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Slovenia: One political risk less after PS congress postponed to 2015.

PM Bratusek's PS party decided to postpone its leadership election congress from 19 October this year to a period before the general election (which is scheduled for December 2015). This came after an increase in political tension because the mayor of Ljubljana and founder and first president of PS, Zoran Jankovic, decided to run against PM Bratusek for PS's leadership. According to the Slovene press agency, there will be a meeting of the Economic and Social Council today, which will discuss the government's plan to combat the grey economy, which has non-negligible consequences for the revenue side of the state budget in forthcoming years. Meanwhile, the government has adopted a proposal to ensure freedom of information not only regarding state institutions, but also public companies. Another necessary step, to which the EC calls attention, is to tackle the complicated ownership structure of state-owned companies.Comment: The decision to hold the congress at a later date has eased political tensions due to the risk that the coalition partners could leave the government in the event of a Jankovic victory. However, tension in the coalition is likely to persist given its heterogeneity (Socialist SD and pensioners DeSUS on one side and PS and DL more on the other side) that has already been reflected in milder cuts on the expenditure side in the proposed state budget for 2014-15. These tensions may become more acute if recent trends in voters' political preferences continue in the direction of a weaker PS and a stronger SD.bne- CITI
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Publication:Balkan Business News
Date:Oct 9, 2013
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