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Slovenia Business Week no. 41: IMAD Official Reiterates Need to Save for a Rainy Day

An official at the leading government economic think-tank said that Slovenia should save for a rainy day during the current strong economic spell, as she responded to a report from the European Commission calling on Slovenia to prepare for the economic effects of an ageing population

An official at the leading government economic think-tank said that Slovenia should save for a rainy day during the current strong economic spell, as she responded to a report from the European Commission calling on Slovenia to prepare for the economic effects of an ageing population.

"Spells of strong economic growth should in principle be utilised for improving the state of public finances," Marija Bednas of the Institute for Macroeconomic Analysis and Development said on Wednesday, 13 December.

In her response to the European Commission's report that calls on Slovenia to enact "stronger measures to ensure the sustainability and adequacy of the pension system", Bednas said that the current low level of the public debt ensures a safety net for when times get tougher.

The 2007 and 2008 budgets show that there will be no increase in government debt, Bednas pointed out.

While praising the tax reform in Slovenia, the Commission questioned on Tuesday, 12 December whether efforts to curb public spending were sufficient.

Bednas meanwhile believes that suitable measures have been taken in the field of pension reform, which should contribute to the long-term sustainability of public finances.

She said that additional measures, including a strategy on active ageing, were in the works and would be implemented in the coming years.

In its report, the Commission also criticised Slovenia's "very gradual increase in the pension age (61 for women in 2013 and 63 for men in 2008)", while financial incentives to work longer are "weak".

Source: Slovenian Press Agency STA

Author: STA, Slovenian National Press Agency