NEWS

Prime Minister Janez Janša: Fiscal consolidation and growth are two sides of the same coin

The Prime Minister of the Republic of Slovenia, Janez Janša, last night attended the informal meeting of the European Council in Brussels. At the meeting, which lasted late into the night, the EU's leaders exchanged their views on the current economic and political situation in Europe. In a statement to the Slovenian media after the meeting, the Prime Minister pointed out that the biggest positive to come from the late night discussion was a solution to the artificially created dilemma regarding the choice between either fiscal discipline or growth. "All the participants at the discussion advocated the idea that both were required, and that they were two sides of the same coin," the Prime Minister explained. In his view, EU development policy has been a policy for growth and the creation of new jobs since the very beginning. "The term 'growth' is a key word that constitutes the nucleus of the European paradigm," the Prime Minister asserted. In his words, this development-related paradigm is also contained in the Europe 2020 strategy, which is a key EU development document. In his view, there remain a number of unexploited opportunities to reinforce the potential for growth at the EU level. In addition, the Prime Minister stressed that an increase in growth and jobs can be achieved through, amongst other things, various trade agreements between the EU and the numerous relevant economic partners throughout the rest of the world.   

 

The Prime Minister referred to the measures adopted by Slovenia to achieve fiscal consolidation. In his words, since the adoption of a package of measures to attain fiscal balance, Slovenia has received informal signs of support from other countries that it was on the right track.  "However, it is just as important to take the next step, meaning structural adjustments and the provision of long-term sustainability, which are the sole preconditions for sustainable development," the Prime Minister added.   

 

The Prime Minister also touched on eurobonds, project bonds, and the financial transaction tax. In his opinion, views on these topics differ between countries. "When it comes to the issue of eurobonds, it has often been stressed that their introduction would mean a change to the basic rules of the game within the European Union, which would take quite some time. In view of the fact that the number of countries opposing such a step exceeds the number of those that are in favour, this move would make practically no sense," the Prime Minister observed. He added that the introduction of project bonds seems to enjoy more support, while the views held on the financial transaction tax are similar to those concerning eurobonds. In his opinion, the most likely outcome is that a group of countries would attempt to implement this tax on their own prior to it being introduced at the European level; in Slovenia, such a possibility is still under review.   

 

The Prime Minister also commented on the view discussed by the EU's leaders with regard to the situation in Greece. "The common wish of all the participants – which was stressed clearly and consensually – was that Greece should remain in the euro area for as long as it honours its commitments," the Prime Minister said. He added that through the structural funds and financing mechanisms that have been used for the purposes of financing Greece's development, the EU would continue to support the efforts being made to help the Greek economy achieve growth.