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“I believe this is a mistake that can backfire and shows there is a state of panic,” he told Bloomberg News last week.
On Saturday finance ministers from across the eurozone were wrapping up a two-day meeting in the Lithuanian capital of Vilnius — with Slovenia on the agenda.
But in Maribor, where 19 per cent of the population are unemployed — the worst in the country — people are asking if the government is doing enough.
“But given that the markets are so unsure, that’s why Slovenia is under observation.“Europe should start thinking about positive investment, and not just austerity,” he said.He pointed out plans of projects that were started, yet never completed: a housing complex in the centre of the town, next to the offices of Vecer local newspaper, where one construction company after another went bankrupt.The country’s VAT has been raised and some privatisation of state assets carried out.Brussels gave the country two years to stabilise its finances, granting it until 2015 to reduce its public deficit to three per cent of GDP from its current eight per cent.
Slovenian recovery seems a long way off, and only Cyprus has had a larger decrease in its GDP this year.