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Prime Minister Janez Janša on proposed schedule and starting points for social contract

At today's session of the Economic and Social Council, the Slovenian Prime Minister, Janez Janša, presented the starting points for the 2012–2017 Social Contract and proposed a time schedule for its preparation.

He began by explaining that today's initiative to invite additional representatives to attend the meetings of the Economic and Social Council and the proposal for starting points on social dialogue represent an attempt "to come to an agreement on where we stand". In this regard, he recalled that just a few years ago there had been a widespread belief that the crisis affecting Europe could in fact be compared to a storm or some other weather disturbance; once it had subsided, everything would be just like it used to be. It is now perfectly clear, however, that this was not the case, but instead represented a change in climate that will persist for some time – both in Slovenia and the rest of Europe. According to the Prime Minister, we are today faced with the irrefutable fact that those countries that have failed to adapt to the change in circumstances presented by the crisis must now deal with the situation and carry out the actions already taken by certain other countries some time ago.

"In its starting points for the next five-year period, the Government proceeds from the assessment that Slovenia has been seriously affected by the economic crisis," the Prime Minister said, "that this crisis still persists and, moreover, that the economic forecasts for our part of the world are getting worse each month"; he also noted that some forecasts predict that Europe might face recession this year. He went on to stress that the situation is deteriorating and that, as a result of the current crisis, evidence of instability can be seen in some of the eurozone's member states. "We are aware that, in the years ahead, Slovenia will be engaged in resolving its own problems; however, being part of Europe, we will also need to cooperate in resolving the even more pressing problems faced by the eurozone's other member states," the Prime Minister noted.

He went on to say that, in its starting points for a social contract, the Government proceeds from the widely agreed assessment that the effectiveness of addressing the problems we face is dependent on and related to the level of consensus and the way in which it is reached in our society. In this context, he added that there is general agreement that we must all pool our efforts in order to overcome the crisis as soon as possible, and to return to the path towards development, as this objective can only be achieved through cooperation.

Furthermore, Prime Minister Janez Janša emphasised that when putting forward a draft proposal for the social contract, the Government also suggests that the quest for relevant solutions be supported by intergenerational dialogue. "We therefore suggest that, whenever solutions are being sought that concern the young generation and pensioners, we invite representatives of these groups to participate in this discussion."
Elaborating on the objectives to be achieved through the new social contract, the Prime Minister referred to those which are precise and measurable. The Government undertakes to achieve the following objectives, among others: that Slovenia ranks among the top half of OECD member countries; that it develops in a steady and sustainable manner; that, over a five-year period, it meets the average standard of development of an EU Member State; that it reduces unemployment by 40%; and that it increases employment to the level stated in the Lisbon Strategy, i.e. 70% of the working population.

 

In this regard, the Prime Minister pointed out that the starting points for a social contract must be based on values such as freedom, justice, hard work, solidarity and taking responsibility for one's conduct and its impact on others, the environment and future generations.

 

The Prime Minister expressed his wish that the starting points for the social contract be coordinated as soon as possible, and by no later than within two or three weeks, which would then allow the parties involved to begin working on a draft. To this end, he outlined a new approach towards the preparation of and time schedule for the social contract. He emphasised that, rather than proposing a text which could then be subject to comment by social partners, the Government had decided on this occasion to establish an equal relationship with them. According to the Prime Minister, a fourteen-day deadline will be extended to all social partners; they would have the opportunity to submit their observations on the content of the social contract by this deadline. On the basis of the relevant proposals, a jointly appointed working group would prepare a draft document that would, in all likelihood, be quite extensive at the outset, the reason being that "it is quite realistic to expect that different solutions will be proposed for the resolution of the same problems; nevertheless, this method can help us cross the finish line faster".

While proceeding with the social dialogue, such a text could be reduced to fewer variants by conducting this dialogue intensively. This would mean almost daily coordination between various groups organised to address different areas. "We aim to complete the coordination procedures by 20 June, the reason being that the Intervention Act applies until the end of that month," the Prime Minister explained. At the same time, he reminded the participants of the statement signed by most of the parties in the National Assembly, which envisages that key reform measures be coordinated by the end of June for the years ahead.  "This goal is not too ambitious; reality dictates that we must be very specific and aware of the fact that the time we have at our disposal is not unlimited. Should we manage to do this, we would arrive at a social contract that would apply for the next five years and define key measures to overcome the crisis and the crucial structural changes Slovenia must adopt," said the Prime Minister.

He went on to state that the social contract for the coming period should also define a clear and concrete fiscal framework, while political coordination regarding the introduction of the golden fiscal rule would continue. Moreover, he highlighted the importance of effective and efficient public administration, sustainable economic development, labour market and employment, and remuneration policy, while knowledge should be defined as the basis for development and social policy tailored to people's needs, where intergenerational dialogue and coordination find greater room for expression.

The Prime Minister concluded by saying that the purpose of social dialogue and intergenerational understanding is to ensure that the burdens are distributed fairly.