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News
06.11.2008
Prime Minister Janša: Today’s measures may help Slovenia avoid recession and a significant rise in unemployment

At a press conference today following the 185th regular session of the Slovenian Government, the Prime Minister of the Republic of Slovenia, Mr Janez Janša, spoke about the Government measures for mitigating the adverse effects of the global financial crisis on economic development in Slovenia. The Prime Minister underlined that the measures proposed and adopted today represent a continuation of measures already submitted to the National Assembly in the form of acts, which should shortly be discussed by the members of the National Assembly.

 

(Photo: Srdjan Živulovič/Bobo)

 

“These are measures which, in the form of immediate aid, produce enough oxygen for the Slovenian economy to retain business activity in the present demanding circumstances and to even increase it where there are real possibilities available for it,” said the Prime Minister. In this context, he emphasised that one of the key objectives of the proposed measures is to replace jobs which cannot be maintained in some sectors with new jobs where the possibilities exist for that.

 

The Government adopted today the draft Act Amending the Personal Income Tax Act and the draft Act Amending the Corporate Income Tax Act. The amendments introduce measures and changes which will reflect the reduced general tax rate for corporate income taxation (the general tax rate for 2008 will amount to 20% of the tax base, and it will decrease in the following two years so that it will amount to 19% of the tax base for 2009 and 18% of the tax base for 2010), as well as the introduced general investment tax relief and the increased existing research and development investment tax relief. “All these measures have already been proposed for this year or for the 2008 tax year, meaning that, should the new government majority in the National Assembly support these measures within a relatively short period of time, the Slovenian economy will get immediate assistance,” commented the Prime Minister. He expressed his belief that in this way, it would be possible to stop the wave of dismissals or threatening pressures to reduce jobs in certain branches of the economy. At the same time, this would ensure that enterprises planning their economic activity in 2009 take into consideration the new situation, and consequently neither decide for dismissals nor plan to increase employment.

 

(Photo: Srdjan Živulovič/Bobo)

 

PM Janez Janša reported that it was possible to cover the loss of budgetary income for 2008 by the EUR 240 million budget surplus. He added that either increasing the budget loss to the extent permitted by the European Stability and Growth Pact, or saving in certain other areas, could ensure that already in the year 2010 the significant economic activity and economic growth that Slovenia needs to catch up with the average of developed European countries will be recorded again.   

 

According to PM Janez Janša, the Government today prepared a response to that part of the effects of the global financial crisis which cannot be avoided by Slovenia as part of the global market. “As long as the measures are adopted in due time, Slovenia may avoid not only the recession but also the essential increase in unemployment that would otherwise result in a negative spiral,” stressed the Prime Minister.

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