The Prime Minister Janez Janša spoke of current political events at today’s press conference. He said that at its session today the Government adopted a budget correction for 2007, a budget proposal for 2008 and the remaining budget documents. The economic growth forecast for next year is higher than anticipated in the Spring Report of the Institute of Macroeconomic Analysis and Development. "Compared to the averages of the EU and the Eurozone that we are joining next year, we shall have above-average economic growth ranging between four per cent and five per cent,” said the Prime Minister.
PHOTO: Office of the Prime Minister
According to the Prime Minister, the latest data show that the budget deficit will be lower by 1.43 per cent this year. Thus next year it will be substantially lower than the originally expected deficit, since it is reduced from 1.24 % to 1 %, while the deficit planned for 2008 is below 1 %. Labour productivity growth is expected to be three per cent to four per cent, which, according to the Prime Minister, is higher than the real growth in salaries. “The unemployment rate this year is at the lowest level since independence; it remains at 6.5 per cent, which is a very encouraging achievement given the other attained macroeconomic results.”
The Prime Minister also spoke of risks, in particular as regards the meeting of the Maastricht criteria. In his opinion, the only risk is inflation, with the fuel price increase contributing almost one half to this year’s inflation; however, it is a fact outside Slovenia’s direct influence. “We will be faced with another risk next year when liberalisation of the electricity market for households takes place, driving up electricity prices a little; it is our expectation, however, that it will remain manageable,” explained the Prime Minister.
It is the Prime Minister’s firm belief that the correction of economic growth with regard to the spring forecast means that some economic measures adopted by the Government in its term of office are already showing results. “In the coming years, citizens can expect real growth of living standards and prosperity and a faster pace in catching up with the average development rate of the European Union”, said the Prime Minister. He is therefore convinced that with economic growth and other macroeconomic indicators the Government will, in the next two years, come very close to the objective set in Slovenia's Development Strategy: three-percentage-point higher economic growth than the average in the European Union; thus Slovenia will catch up with the EU average within the projected period.
The Prime Minister then spoke of a meeting with President Janez Drnovšek the day before at which past misunderstandings were cleared. He said he hoped that there would no longer be any such public controversies; and especially those spilling over Slovenia’s borders. When drafting the proposed budget modifications for 2007, the Government has allocated budget funds to the Office of the President of the Republic of Slovenia fully in compliance with the Office’s proposal.
When asked by a journalist about the interpellation motion filed against the Minister of Culture, Dr Vasko Simoniti, the Prime Minister expressed his disappointment with the Opposition. He went on to add that the Liberal Democracy of Slovenia had been announcing a serious interpellation for a long time, only to produce, in the end, a mere list of lamentations the country had been listening to ever since the referendum which they had lost. “The interpellation is only about matters that the LDS does not agree with; therefore I am sure that the Ministry of Culture will have an easy task rejecting it.”
The Prime Minister also answered questions concerning possible premature termination of the lease contract for Slovenian aircraft Falcon 2000 EC, leased by the previous government to an American company. The Prime Minister confirmed that the Slovenian embassy in the US had been instructed to enquire about the terms of retrieving the aircraft ahead of the contract’s expiry. He went on to add that Slovenia would need this aircraft when preparing for, and during, its EU Presidency. “We are looking for the cheapest option in order to meet the needs that cannot be avoided,” said the Prime Minister and added that the enquiries to date had shown that aircraft of equal or lower standing could not be hired for the money received by Slovenia for the lease of its own aircraft.
