Slovenia’s new Prime Minister-designate Alenka Bratušek has pledged to heal the country’s struggling banking sector and prevent an international bailout. The Prime Minister-designate also elaborated on her plans to rescue the economy from an impending doom.
After dismissing Janez Janša‘s cabinet on Wednesday, legislators handed over the reins of the country to Bratušek. According to analysts, Bratušek’s credentials as a finance expert made her a top contender for the job. As the economic condition spells fresh trouble for the country everyday, Bratušek knows she has a tough job at hand.
Once a booming Euro Zone member, Slovenia is currently facing perhaps its worst economic crisis since independence. Its public debt is much below the EU accepted ceiling of 60 percent of GDP. Further, it has suffered due to the economic downturn in some of its principal export markets. As a result, analysts expect a negative growth rate and high budget deficit.
Slovenia is in a dicey situation because all sectors are reeling under the pressure of an economic downturn. Unemployment rates have hit the roof and a sense of economic stagnation has engulfed, making it a depressing state of affairs. Moreover, political excesses and instability have made matters worse.
Realizing the need to step up efforts and introduce policies that will instill a positive spirit in the economy, Bratušek has called for stronger actions. She has spelt out three crucial steps for an economic overhaul. These are restoration of the banking system, superior management of state assets and consolidation of public funds. Elaborating on her plans, Bratušek said that she expects these moves will make investors feel more confident about investing in Slovenia.
The Parliament is expected to vote on Bratušek’s proposed cabinet later this month. The cabinet will include the Social Democrats and two parties which earlier supported Jansa. Notably, the parties differ on the subject of forming a “bad bank” which Bratušek had previously opposed.
With the public opinion sharply turned against elitism and its zero tolerance for corruption, Bratušek will face several challenges in the coming months. Political wrongdoings have already put the country in a perilous position and estimates indicate that a bailout for the country can run into 5 billion Euros.
Analysts are particularly keen on seeing how Bratušek manages to balance her pro-growth strategy with the rather orthodox solutions needed to restructure the banks. They strongly feel that political parties will try to avoid early elections. However, disagreements and political aspirants might prompt some parties to create more challenges.
The new Prime Minister-designate in her address, voiced her opinions on undertaking steps that will boost economic growth and prevent a potential bailout. She also hinted at ending the unpopular austerity drive by focusing more on economic reforms. As the world watches on at Slovenia to put its house in order and come up with robust measures, the next few days will be extremely challenging for Bratušek who must stake her claim at forming a government and implement actions for greater good.
