Slovenia to cut jobs, spending in budget

(LJUBLJANA) - Slovenia's government adopted Thursday a budget that includes spending cuts and a reduction of public sector jobs as the European Union member launched an exit strategy from the economic crisis.

The budget proposed by the government would cut one percent of the public workforce, or 1,600 jobs per year, Development Minister Mitja Gaspari said. There are 160,000 state employees in the country of two million people.

The government wants to reduce spending without raising taxes, he said.

It also plans to sell a number of state companies or properties worth up to two percent of Gross Domestic Product.

"We will decide later on which public companies or properties will be sold taking into account only the economic rather than the national interests," Gaspari told a news conference.

Slovenia's public debt will increase from 39.6 of GDP to 42.1 percent by 2013 although the government is also considering measures that would keep it under 40 percent, Gaspari said.

Prime Minister Borut Pahor said the exit strategy will be sent to parliament for debate and approval. He said Slovenia would be among the first countries to adopt such a strategy.

"Over the next years a 'war' of national economies will take place and Slovenia's government hopes that with the current exit strategy we will be among the winners," Pahor said.