Managers Endorse Government Reform Proposals
Slovenian managers have endorsed the government's proposed package of economic and social reforms, according to PM Janez Jansa, who presented the reforms on Thursday. "They all supported the course of reforms, but there are various views on measures that have a different impact on different industries" Jansa told the press after the meeting.
"This debate gave the government a major boost for the proposed course of reforms, especially the core measures that improve the competitiveness of Slovenian economy and consequently enable faster economic growth," the prime minister stressed after talks with managers of the country's biggest companies.
According to him, the debate has also proved useful for the last phase of reforms, just before the government gives a final stamp of approval. Many issues were put forward that we may take into account, he said.
"We do not think that the proposed solutions are the only way to achieve the objectives; we are open for suggestions towards the balancing of individual measures," Jansa explained.
Zoran Jankovic, the chief executive of retailer Mercator, stressed after the talks that the government and businesses must always have the same objective - Slovenia's development.
He underlined that a consensus will have to be reached with workers as well, since "the moment gross salaries decrease, pressure on salaries will increase again because of somewhat more expensive food."
To counter that, Jankovic insists that wage increases should be replaced by internal shareholding, at least where companies have profits.
Jansa said that the reform package entails the commitment to draft legislation enabling employees to get a share of their company's profit. "If tax reform-induced savings translate into profit, the employees will partake in it," he said.
In any case, Jankovic insists that public spending must be brought down: "Without that the reform will not succeed."
While Jankovic said that on aggregate Mercator would actually lose out in reforms since food will be more expensive, chairman of drug maker Krka, Joze Colaric, said the reforms would result in nothing but savings for his company.
"I am somewhat concerned about the flat tax rate in tourism, but in general it will have to be explained very well how to manage the food segment, as a flat tax rate could raise food prices," Colaric commented.
According to him, the most difficult step in the reforms will be changing the people's mentality. "We have to realise that we will have to work more and more efficiently, in the corporate sector as well as in public administration.
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