Economic Partnership Programme of Slovenia - Main contents

EN

Official Journal of the European Union

C 368/7

The Stability and Growth Pact (SGP) aims at securing budgetary discipline across the Union and sets out the framework for preventing and correcting excessive government deficits. It is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth underpinned by financial stability, thereby supporting the achievement of the Union's objectives for sustainable growth and jobs.

Regulation (EU) No 473/2013 sets out provisions for enhanced monitoring of budgetary policies in the euro area and for ensuring that national budgets are consistent with the economic policy guidance issued in the context of the SGP and the European Semester. Since purely budgetary measures might be insufficient to ensure a lasting correction of the excessive deficit, additional policy measures and structural reforms may be required.

Article 9 of Regulation (EU) No 473/2013 sets out the detailed arrangements for economic partnership programmes, to be submitted by Member States whose currency is the euro under an excessive deficit procedure. Setting out a roadmap of measures to contribute to an effective and lasting correction of the excessive deficit, the economic partnership programme should specify in particular the main fiscal-structural reforms, in particular those referring to taxation, pension and health systems and budgetary frameworks.

On 2 December 2009, the Council adopted a decision according to Article 126(6) of the Treaty, whereby Slovenia was the subject of an excessive deficit procedure. The Council adopted on 21 June 2013 a revised recommendation under Article 126(7) of the Treaty in the context of an excessive deficit which was opened before the entry into force of Regulation (EU) No 473/2013. In this context, Slovenia was requested to present an economic partnership programme by 1 October 2013, setting out fiscal-structural reforms that aim at ensuring an effective and lasting correction of the excessive deficit.

The economic partnership programme submitted by Slovenia on 1 October includes measures aimed at reinforcing the budgetary strategy for a lasting correction of the excessive deficit [Council country-specific recommendation (‘CSR’) 1], supporting the long-term sustainability of the pension system and containing ageing costs (CSR2), reforming the labour market (CSR3), assessing the quality of assets in the banking system (CSR4), improving banks regulatory framework and supervisory capabilities (CSR5), reforming regulated professions (CSR6), shortening the length of judicial procedures (CSR7), strengthening corporate governance of SOEs and privatisation (CSR8) and restructuring companies and improving the business environment (CSR9).

The fiscal-structural measures and reforms that Slovenia plans to implement concern the following: (i) tax system and tax compliance; (ii) fiscal framework; (iii) pension system; and (iv) long-term care. The set of measures is partially adequate and could be expected to contribute to the effective and lasting correction of the excessive deficit situation. Nevertheless, further...