LJUBLJANA (Slovenia), May 10 (SeeNews) – Slovenian government said it approved national reform and stability programmes in response to specific recommendations made by the European Council last year.
The measures include a tax increase, restructuring of Slovenia's ailing banking sector and privatization of 10 state-owned companies including Aerodrom Lubljana, Nova Kreditna Banka Maribor, Telekom Slovenije and Cinkarna Celje, the government said in a statement on Thursday.
The government also adopted crucial measures that include a priority to re-start growth while considering the existing macro-economic basis and limitations imposed by the second priority, fiscal consolidation.
Short-term measures to re-start growth in the Stability Programme 2013-2014 include measures to overhaul the banks, reduce debt and restructure companies, improve corporate management and strengthen the privatisation process.
The main goals of Slovenia’s fiscal policy in the Stability Programme 2013 period are: structural balance by 2017, which will enable the deficit to be lowered below 3.0% of the the country's gross domestic product (GDP) by 2015 and stabilising government debt to below 55% of the GDP.
The goal of lowering the deficit to below 3.0% of GDP will be achieved in 2015, particularly by reducing public expenditure and partly by increasing revenue, it said.
The most important permanent measures in terms of revenue are: increasing the normal Value Added Tax (VAT) rate by two percentage points and lower VAT rate by one percentage point as of July 1, 2013, introducing a crisis tax as of January 1, 2014 and the introduction of a property tax as of January 1, 2014. Details were not provided.
By the end of the year, the government will present a second package of measures permanently targeting expenditures, which will be evenly distributed over all sectors.
The government will refer the Stability Proramme 2013 and Reform Programme 2013-2014 to the European Commission and the Council of the EU as well as to the National Assembly.