Slovenia must unlock its development potential and create the conditions for higher wages
SLOVENIA, October 20 - He also touched on the outcomes of the recent referendums, demographic challenges, decentralisation of the state and European energy policy. He stressed that Slovenia has great development potential, which must be unlocked by creating more favourable conditions for work, investment and economic growth.
The Prime Minister began by assessing the first few months of the Government's work. He explained that the current coalition has a clear coalition agreement and programme of work, but that the challenging international circumstances – particularly the war in Ukraine, the situation in the Middle East and uncertainty over energy prices – also have a significant impact on the Government's work. Among the Government's first priorities, he highlighted the preparation of a revised budget for the current year and budgets for the next two years, as well as the reorganisation of the state administration following the reduction in the number of ministries from 20 to 15.
Development legislation for higher wages and a more competitive economy
A significant part of the interview was devoted to the Act Determining Intervention Measures for the Development of Slovenia, which voters will decide on in a referendum scheduled for 6 December. The Prime Minister stressed that it includes a comprehensive range of measures, as development issues cannot be addressed in just one area. He warned that employees and pensioners would also feel the effects of delays in adopting development measures.
According to the Prime Minister, one of the key problems facing the Slovenian economy is the excessive tax burden on productive work, which is undermining Slovenia's competitiveness in high-value-added sectors.
"Slovenia is competitive when it comes to low wages. But we are largely uncompetitive in areas where development and high added value are created and where our future lies," he said.
He rejected claims that the law on Slovenia’s development is primarily intended for the wealthy. "This is a law that will enable more people in Slovenia to become wealthy because they will be paid fairly for their work," he stressed.
According to the Prime Minister, the planned tax relief measures will result in slightly lower public revenues in the short term, but in the long term, they will encourage investment, create better-paid jobs and stimulate economic growth.
"Once this law enters into force, employees and pensioners will have more money left in their pockets, while businesses will have more funds available for development," he explained.
A more efficient public administration and decentralisation of the state
The Prime Minister also spoke about streamlining the public sector. He explained that the aim was not to reduce the number of employees in areas where there was a shortage, but to address imbalances and eliminate unnecessary administrative procedures.
"There are parts of the public sector where there are too few staff, and others where, by comparison, there are simply too many. And staff will have to be reassigned accordingly," he said.
He further emphasised the importance of decentralising the state administration as a way for the Government to encourage more balanced regional development, reduce daily commuting and bring decision-making closer to other parts of the country.
"We want a different approach to decentralisation. We want a system in which the central departments of ministries are located not only in Ljubljana but also elsewhere in the country," he stressed.
He also announced plans to speed up administrative procedures for siting infrastructure projects, particularly the construction of the Third Development Axis.
Changes in healthcare and education
The Prime Minister also discussed changes in healthcare, emphasising the importance of making more efficient use of available healthcare staff. In this regard, he pointed out that allowing doctors to perform additional work for private healthcare providers helps retain healthcare professionals in public healthcare institutions, while also enabling more healthcare services to be provided and waiting times to be reduced.
He also spoke about the planned reform of the education system, which he believes is necessary because of the declining performance of Slovenian pupils in international comparisons. He noted that the number of regulations and administrative obligations had increased, while results had failed to keep pace with the resources invested.
"We are not talking about people. We are talking about a system that misallocates resources and perhaps also rewards people inappropriately," he stressed.
He highlighted the importance of teachers' authority, reducing the administrative burden and adapting the education system to rapid technological development.
Demographic trends as one of the greatest development challenges
The Prime Minister devoted particular attention to demographic trends, describing them as one of the most serious long-term challenges facing Slovenia and Europe.
As one of the measures to improve conditions for young families, he highlighted the objective of gradually introducing free kindergarten for all children, noting that the pace of implementation would also depend on the state of public finances.
"A child must not be a cost to society. A child must be an investment," he stressed.
According to the Prime Minister, the state must create conditions in which economic considerations are not a decisive obstacle to starting a family.
High energy prices and European competitiveness
The Prime Minister then touched on the recent European Council meeting, at which leaders also discussed high energy prices and their impact on the European economy.
He pointed out that the emissions trading system has a significant impact on electricity prices and, consequently, on the competitiveness of European industry. He expressed the expectation that some green transition measures would undergo a more thorough review in the future. He identified the insufficient role of nuclear energy in recent decades as one of the key strategic mistakes in European energy policy.
He also spoke about the negotiations on the European Union's next multiannual financial framework and pointed out that Slovenia is not catching up with the European average level of development fast enough. He stressed that the country must make more effective use of EU funds to close the development gap.
Respecting the will of the people as expressed in referendums and strengthening the rule of law
The Prime Minister also commented on the results of recent referendums and highlighted the importance of high voter turnout. He emphasised the distinction between legislative and consultative referendums and noted that the outcome of the referendum on the mandatory RTV licence fee reflected a deeply divided public, meaning that an appropriate solution will need to be found.
He also touched on changes in the prosecution of corruption and organised crime and expressed the expectation that the new specialised bodies would help ensure more effective prosecution of the most complex criminal offences.
In closing, the Prime Minister stressed that Slovenia possesses the expertise, capital and other development potential, but that making more effective use of these assets requires a more competitive business environment, less bureaucracy and a more favourable tax policy. The key objective of the Government's measures is to create conditions for faster economic growth, higher wages, better pensions and greater prosperity for all citizens.
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