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Slovenia Business Week no. 36: Macroeconomic Indicators the Best so Far, PM Says

The PM is convinced that the indicators are reason enough for even greater optimism regarding the impeding 1 January 2007 euro changeover

The relations between key macroeconomic indicators have never been so good in Slovenia, PM Janez Jansa told the press on Wednesday, 8 November, after the European Commission projected that Slovenia's gross domestic product (GDP) growth will reach 4.8% in 2006, while the inflation rate is to stand at 2.5%.

The PM is convinced that the indicators are reason enough for even greater optimism regarding the impeding 1 January 2007 euro changeover.

"Slovenia will become a part of the interior circle of the EU's developed countries, which will in itself boost its reputation and improve opportunities for the Slovenian economy," Jansa added.

According to Jansa, while business conditions will not radically change in the short term, the stability of public finances will improve and business operations will be simplified.

As a new, simpler and friendlier tax system will also enter into force on 1 January, labour costs will be gradually reduced, he said. Parliament passed the government package of tax laws earlier in the month.

The gradual reduction is necessary because loss of budget revenues will have to be compensated somehow after what Jansa termed "the most radical reduction in labour costs so far".

Jansa moreover believes that the business environment will become much friendlier in the coming year, increasing the possibilities for achieving even better economic results.

Slovenia is also reducing its budget deficit, not by reducing the scope of social and other rights, but through cost cutting by the state, the PM explained.

Source: Slovenian Press Agency STA

Author: STA, Slovenian National Press Agency