Slovenian PM says she is bowing out with budget deficit halved

Telekom Slovenije, D.d

24/07/2014 15:56

* Bratusek warns deal needed on public sector wages 
 
    By Marja Novak 
    LJUBLJANA, July 24 (Reuters) - Slovenia's outgoing prime 
minister said on Thursday that her government, which managed a 
bank bailout without outside help, has also almost halved the 
central government deficit in the first six months of this year. 
    Prime Minister Alenka Bratusek, who is due to hand over to 
political newcomer Miro Cerar once he has formed a new 
government, said the 2014 budget deficit "will be as planned, 
the figures we reported to Brussels will be met." 
    While central government accounts for only part of the 
deficit, the figures reported to Brussels also include local 
government, health and pension costs.  
    In March the government said it expected the overall deficit 
to fall to some 4.2 percent of gross domestic product (GDP) in 
2014 from 14.7 percent last year, when the government poured 
more than 3 billion euros ($4 billion) into largely state-owned 
local banks.    
    Bratusek told a news conference the biggest threat to 
Slovenia's plan to reduce the deficit to some 3 percent of GDP 
next year was the public sector wage bill, which will increase 
by some 350 million euros unless the new government reaches an 
agreement with trade unions to prevent regular wage hikes. 
    "We tried to reach such a deal which would make the work of 
the next government easier ... but were not successful due to 
unacceptable trade union demands," she said. 
    Legal expert Miro Cerar, who won a July 13 snap election, is 
expected to have a coalition government in place in September. 
His SMC party started coalition talks earlier on Thursday and 
the new parliament is due to convene on August 1. 
 ID:nL6N0PX3MB  
    Investors are concerned about Cerar's hostility to selling 
strategic assets - notably telecom operator Telekom Slovenia 
 TLSG.LJ  and airport Aerodrom Ljubljana  ARPO.LJ  - saying the 
only way to steady the country's finances is to privatise. 
 ($1 = 0.7426 Euros) 
 
 (Reporting by Marja Novak; Editing by Ruth Pitchford) 
 ((Marja.Novak@thomsonreuters.com)(+386-8-205-6369)(Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: SLOVENIA DEFICIT/