SLOVENIA: Pparliament votes on the new cabinet proposed by incoming Prime Minister Alenka Bratusek, expected to pull the country out of a new recession and avoid an international bailout

Record ID: 327902

  • Title: SLOVENIA: Pparliament votes on the new cabinet proposed by incoming Prime Minister Alenka Bratusek, expected to pull the country out of a new recession and avoid an international bailout
  • Date: 20th March 2013
  • Summary: LJUBLJANA, SLOVENIA (MARCH 20, 2013) (REUTERS) EXTERIOR OF PARLIAMENT BUILDING SLOVENIAN AND EU FLAGS ENTRANCE TO PARLIAMENT MEMBERS OF PARLIAMENT SEATED FOR SESSION PRIME MINISTER DESIGNATE ALENKA BRATUSEK ARRIVING AT PODIUM SLOVENIAN AND EU FLAGS BEHIND SPEAKERS' PODIUM (SOUNDBITE) (Slovenian) PRIME MINISTER DESIGNATE, ALENKA BRATUSEK SAYING: "Stability, trust, growth and positive effects are in short what we have agreed on (among the coalition partners) for the tasks of the new government. We know very well that we can regain the trust necessary for our economic growth only by stabilising our political scene and the financial sector, and we are aware that the positive effects of growth and its effects on employment will be felt only after some time." GROUP OF MPs LISTENING BRATUSEK SPEAKING, MEMBERS OF PARLIAMENT LISTENING MEMBERS OF PARLIAMENT LISTENING TO BRATUSEK'S SPEECH WIDE OF PARLIAMENT SESSION IN PROGRESS
  • Embargoed: 4th April 2013 13:00
  • Keywords:
  • Location: Slovenia
  • Country: Slovenia
  • Topics: Politics
  • Reuters ID: LVA3SCKFVDJC6HYD73IVRT55G8CK
  • Story Text: Slovenia's parliament is expected to confirm the new cabinet proposed by incoming Prime Minister Alenka Bratusek late on Wednesday (March 20).
    If confirmed, the new cabinet grouped around Bratusek's centre-left Positive Slovenia will take over from Prime Minister Janez Jansa's conservatives, who lost a majority in parliament in January over a corruption scandal.
    Bratusek's four-party coalition controls 49 out of 90 seats in parliament. She told legislators before the vote that her cabinet plans to ensure fiscal and political stability, increase the competitiveness of the economy and create jobs for the young.
    "Stability, trust, growth and positive effects are in short what we have agreed on (among coalition partners) for the tasks of the new government. We know very well that we can regain the trust necessary for our economic growth only by stabilising our political scene and the financial sector, and we are aware that the positive effects of growth and its effects on employment will be felt only after some time", she said.
    Bratusek previously said that the government would focus on solving the problems of the local banks, which are burdened by some 7 billion euros ($9.02 billion) of bad loans, equalling 20 percent of GDP.
    She gave no details but the future finance minister Uros Cufer said on Tuesday (March 19) that the new government would set up a "bad bank" as planned by the previous conservative cabinet.
    The country's banks, mostly state-owned, are at the heart of speculation that the small Alpine state of 2 million people may have to follow Cyprus and other troubled euro zone states in seeking a bailout.
    Analysts said enforcing the bad bank law was a priority for the new government.
    Slovenia, which is also struggling with a renewed recession amid lower export demand and a fall in domestic spending caused by budget cuts, in October managed to issue its first sovereign bond in 19 months, averting a bailout at least until June.
    The European Commission expects Slovenia's GDP to fall by 2 percent this year after a contraction of 2.3 percent in 2012. The government's macroeconomic institute expects unemployment, currently at a 14-year-high with 13.6 percent jobless rate, to fall significantly only in 2015.
    Bratusek said she would ask for a confidence vote in parliament in one year, in line with a coalition agreement, so as to give her partners a chance to opt for a snap election if they were unhappy with the government's work.
    A regular election is due in late 2015.
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