Slovenia to Remain One Cohesion Region until the End of 2005

Ljubljana, 20 July

Slovenia should remain one cohesion region until this represents a better option in negotiations on the 2007-2013 budget framework, agreed top party officials at a meeting with PM Janez Jansa on Wednesday.

As a result, the parliament will not fast-track the bill on promotion of balanced regional development (which envisages the division into two regions) next week. Instead, the bill will be put forward to parliament in September, Jansa explained after the meeting.
This decision was made because statistical data which will push Slovenia above the eligibility threshold for the top-level cohesion funds, which lies at 75% of the average GDP in the 25-member bloc, will not be used for budget allocation calculations before the end of the year.
Jansa explained that under the current statistical data, Slovenia will not exceed the 75% limit until the end of the year. It is therefore wise not to divide the country at the NUTS 2 level, since having one region under these circumstances would mean more budget funds.
"We'll see what comes later, when new data comes and we have more information about the dynamics of negotiations on the next financial perspective," Jansa stressed. In any case, the division to multiple cohesion regions is still an option, but in the best case scenario that would not be necessary before 2014.
"The participants at the meeting sincerely hope to have enough time to carry out an internal political division before that...and on that basis form cohesion regions," Jansa said, hopeful that the current budget talks would wrap up as soon as possible.
Ivan Zagar, the minister of local government and regional policy, agreed with Jansa. "The facts remain the same, only the time pressure has eased. Slovenia meets the criteria for a division to two regions, but if we wanted to create three we would have to establish provinces first," he said.
The government is carrying out procedures for an internal political division into provinces. He said a package of relevant laws will be drawn up by the end of the year, which might involve changes to the constitution.
The meeting was held following disagreements between the coalition and the opposition on the division to cohesion regions: while the government pushed for two, the opposition insisted that Slovenia should give it a try and negotiate a division to three regions, which would improve the tally of budget funds.
The opposition was pleased with the outcome of the talks. Borut Pahor, the president of the Social Democrats (SD) said that the information about the non-availability of new statistical data is reliable enough so that Slovenia can negotiate as one region until the end of the year.
Anton Rop, the president of the Liberal Democrats (LDS), meanwhile welcomed the fact that the debate about the division into regions has been postponed until September. This gives the government enough time for additional deliberations as well as appropriate surveys and calculations.
He also noted that the development regarding statistical data is not surprising: Eurostat, the EU's statistical office, publishes GDP data every year in January, he explained.

Slovenia to Remain One Cohesion Region until the End of 2005

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