WEBVTT

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Hello. We continued
our coalition meeting today.

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We had two items
on the agenda.

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We discussed reform
of the public sector wage system

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and reform of the housing
market.

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We followed the pattern
from our previous meeting,

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where we discussed healthcare
reform. Once again, we began

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with an analysis of
the current situation.

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We then had an extensive
debate. The part about the wage

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system was a bit longer,
but our discussion about housing

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was also detailed. On the basis
of both analyses, we then

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came to an agreement, which will
be reflected in the minutes,

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about our priorities
and the timeline

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for carrying both reforms. Our plan
of action is always the same.

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We begin with an analysis,
followed by our priorities,

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and finally a timeline.

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As for the wage system,
we had a single conclusion,

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namely that we haven't had
a comprehensive public wage system

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for quite a while,
unfortunately.

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Instead of pretending otherwise,
we'll reform the system.

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This will involve many steps.
One, just one, of those steps

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consists of negotiations
in the context of social dialog

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about current wage ratios.

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These negotiations
will serve as the basis

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for all other reform measures.

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Reforms won't end
with negotiations.

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To achieve reform, we'll need
to take many other steps.

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The details will be presented
in the next few days,

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or more likely in the next week,
after the minutes are ready.

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The conclusions
that have been confirmed

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include our determination
that the lowest segment

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of the wage ladder will be
addressed first.

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It is unacceptable that
we have wage levels

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that fall beneath the minimum wage.
We'll address this first,

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and that's how we'll begin
our reform.

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The second part involves
changing the wage ratio,

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in part according to the proposals
that we've received,

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to 1:7 of the lowest wages
to the highest wages

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in the public sector.

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The third part concerns
finding a system to coordinate wages

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through the years, just as
we currently coordinate

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the minimum wage, pensions,
and social transfers.

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We'll try to find
a joint basis

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on which we'll
coordinate these four categories.

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This doesn't exist now.
Each has its own legal basis,

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so we have cases of submersion
within the minimum wage,

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problems with social transfers,
and so on.

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This coordination is very important
because we don't want to examine

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whether the system is still
unified every year.

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Equally important was our conclusion
that we won't seek solutions

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in a single sector,
but rather in multiple ones,

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with sector-based agreements,
where we'll try to achieve

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at least partial autonomy
within sectors,

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allowing each sector
to determine its own wage ratio.

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This way, we wish to involve
all actors in the social dialog,

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while giving them a share
of responsibility

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for their mutual relations.

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This brings us to the conclusion,
namely our commitment

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to change the current spiderweb
model, which triggers system-wide

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demands whenever
we change a single wage level.

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We'll get rid of this system
once and for all.

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This will ensure that the system,
when it's set up,

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is going to be sustainable,
not just for a year or two,

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but for a longer period without
creating new injustices

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among different
professional sectors.

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As for the housing market reforms,
we reached a unanimous decision,

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not just because it was an election
promise of ours, that we need to act

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decisively and with combined forces.

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We all agree that if we really
want to make progress,

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the basis of reform has to be
the public sector,

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namely public housing funds.

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We agree that if we want
to change things,

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we need to increase
budgetary spending

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for the public housing fund.

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At the same time, we need
to set up a housing policy framework

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that will allow construction
on state property

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owned by the Sovereign Holding
Corporation,

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and that the reform will involve
various co-ops, investors,

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and other categories. We would like
to create a regulatory framework

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that will allow affordable housing
to emerge in the market

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and become available to the widest
possible range of renters,

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including investors,
with a single purpose.

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That the prices of both rents and
apartments decrease in the long term.

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The reform is not intended

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for a narrow group
to solve its housing problem.

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It is intended to make the entire
housing stock on the market

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cheaper for all groups.

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We are ready to invest
public money for this.

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I'll let Luka talk about
the more detailed plans,

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because this is their field.

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We are talking about the fact

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that capacities
must be built slowly over the years.

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We will not promise thousands
of apartments this year,

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because that is not feasible.
We will promise

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to prepare all the infrastructure
by the end of the mandate,

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so that we can talk about several
thousand apartments per year

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from 2026 onwards.

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This is also the main message.

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We are aware of both short-term
challenges, in the case of salaries,

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as well as long-term
housing challenges.

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Regardless of the fact

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that sometimes the situation
in the country is tense,

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sometimes even in the coalition,

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we will not deviate from the reforms
and enter into them together.

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Thank you very much, Prime Minister.
Mrs Fajon, go ahead.

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Thank you very much.

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We had a very in-depth
comprehensive discussion today

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on two new key reforms,

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especially on the reform
of the salary system.

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We looked at the starting point
of the housing policy reform.

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We are very close
to what we want to achieve.

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We agree that a comprehensive overhaul
of the salary system is necessary.

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Today we can no longer talk
about a unified salary system,

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because it fell apart.

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Dissatisfaction is growing, ratios
are broken, there are anomalies,

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many shortcomings that
need to be eliminated urgently.

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Above all, we made a commitment

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to an ambitious timeline
and hard work within the coalition.

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We see that there
are many disparities.

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A few directions are key.

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Transparency
as we work on this reform,

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financial sustainability,
equal pay for equal work.

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It is unacceptable that
someone who works full time

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does not even reach
the minimum salary today.

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Ahead of us is probably one
of the most extensive reforms,

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the hardest nut to crack
on which other reforms will depend.

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We agreed to work together
as a coalition on these reforms,

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that it will be a difficult year,

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but that we will work together
on this path.

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It is essential for the SD

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that when it comes to
the renovation of the salary system

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we will at all times
cooperate with social partners

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in social dialogue where necessary.

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Of course,
we will have to be very patient.

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A difficult period awaits us.

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We must establish
fair salary ratios,

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especially in the
lower part of the scale,

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where everyone
deserves a decent salary.

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Just briefly regarding
the housing reform.

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The SD entered this government

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with the ambition to tackle
housing reform as well.

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Today we also heard a good analysis
and some concrete directions.

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We have already
written our law.

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Today I offered to help.
In the coalition,

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we have very similar plans for the
construction of rental apartments

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in this mandate or by 2030.

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How to secure financing,
public funds

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and other resources
that will be necessary for this.

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The fact that we have
planned joint measures

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and that we are ready
to sit down together

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in professional working
groups with our colleagues,

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means we are definitely
on the right track.

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Next time, new reforms await us,

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all this will require a lot of
responsibility and patience from us.

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The year of reforms also calls
for a new social agreement.

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Thank you very much.
Mr Mesec.

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Thank you. As the coordinator
of Levica and the Minister of Labour

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I am very satisfied with
the course of today's summit.

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As for the salary reform,
I agree with the conclusions.

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We got acquainted
with a rather extensive analysis

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of the dynamics
in the public sector salary system

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from 2015 onwards,
which cannot be disputed.

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The fact is that this system
is getting more expensive each year.

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Despite the fact that there is more
money in the system every year,

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there is more and more
dissatisfaction.

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The public sector salary system

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has become the generator
of this dissatisfaction.

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The first thing
we are very pleased with

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is the conclusion of today's summit
that there will no longer be

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salaries below the minimum salary
in the public sector.

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This is the starting point
we are working on.

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The second thing, salary ratios
will be limited to one to seven.

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And the third thing...
I welcome this development.

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The state will no longer try to
intervene left, right and centre

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in the public sector salary system
like it does now.

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It will be structured
into pillars or branches

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and the autonomy to set
salaries and benefits

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will partly be left to social
partners within these pillars.

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So,
we are completely changing

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the dynamic of setting salaries
in the public sector.

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I think
this is a big step forward

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or rather the first
real step forward

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after Virant's reform in 2008.

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Secondly, housing policy.
As was already said,

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Slovenia has been living
on the fumes of the past

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for a long time now.

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The housing fund
is getting older every year.

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Construction of housing
is stopping.

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Self-construction, so people
who built their own housing,

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saved us for a while.

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There was relatively little
other construction.

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There was an interesting spike
in private construction

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around 2005 to 2008,

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which subsided after the crisis
and never really recovered.

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But the state also never
invested in this policy

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and now we have
a huge problem.

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My generation,
and younger people even more so,

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cannot get decent rents
and often cannot get housing loans.

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We have to ask ourselves
how these people will live

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in their old age, when they
won't have accessible housing.

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What sort of social crisis
will this cause in our state?

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So, this housing policy
is an investment in the future

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and in new generations
and we will set it as follows.

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As the Prime Minister said,

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because of the obvious
market failure in Slovenia,

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the public sector is intervening,
so public housing funds.

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We will set
the system up plurally.

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We will not
put all our eggs in one basket.

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We will establish
a plural system

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where we will
clearly define conditions

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for who can enter
the market of public funds,

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under what conditions
public housing will be built

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and how these organisations
should be organised.

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So, non-profit public housing will
be built by public housing funds,

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non-profit
housing organisations

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that can be organised
as enterprises,

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housing cooperatives
and perhaps others.

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We are emulating
the Austrian model.

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Our goal
is to create a machine

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that will build
2000 apartments per year

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by the end of the term.

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After the agreement
we came to today

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I believe
this goal is reachable.

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It is clear
how this will be done

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and how
it will be publicly supported.

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I must say that for the first time
in my life I'm optimistic

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that we really will build
a housing policy in Slovenia.

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The bottom line is that I think
we had a very successful day.

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3000. -Apologies, 3000, I was
corrected by the Prime Minister.

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Who is even more optimistic
than Luka Mesec.

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Thank you all. Journalists,
please step up to the microphone.

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These were the only two topics
at this summit,

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please limit
your questions accordingly.

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Anže Božič, POP TV.

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Mr. Prime Minister, could you
please elaborate a little further

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on the salary system. You spoke
about pillars and branches.

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How many of them are there
and which are the branches?

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This is a significant novelty.

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Regarding housing, will the Housing
Fund be able to go into debt?

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I think that as a public institution
it so far wasn't allowed to.

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And regarding minimum wage,
did we understand correctly

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that this applies to all groups
or rather all professions,

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that there will be no more salaries
below minimum wage?

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Thank you.
Prime Minister.

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I will start at the end.
Yes, that's the guideline.

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But all we talked about today
were bases.

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The starting points
were widely debated

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and now
we will prepare minutes

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that will then also be
verified by the partners

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so we will all know
what the agreement is.

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Then we will
present it to the public,

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like we did with healthcare.
We always present it later.

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I will only talk about the starting
points without going into detail.

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So, yes, the basic guideline
is that there can be

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no more salaries under minimum wage.
Pay grades must be adapted to this.

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Secondly,
regarding the ...

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What was the first question?

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Loans were second.
All right, let's talk about loans.

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The Housing Fund
can already go into debt,

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but it has already reached
its credit capacity.

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So it can't go into debt
because it can't get funds.

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By providing public funds

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we will also increase its
credit potential, which is logical.

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Please remind me ...
Oh, yes. Regarding the pillars,

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today we discussed
one proposal

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as well as the number
of pillars and branches.

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We are expecting a response
from our coalition partners.

00:18:02.601 --> 00:18:06.745
When we get it, we will see
whether the proposal will stand,

00:18:06.866 --> 00:18:08.960
otherwise we'll amend it.

00:18:09.104 --> 00:18:11.960
I think there are seven
in this proposal,

00:18:12.081 --> 00:18:14.733
but that is not
a final number yet.

00:18:14.854 --> 00:18:17.775
We will find out
on Monday or Tuesday,

00:18:17.896 --> 00:18:22.947
when we get a response from
everyone who attended the summit.

00:18:23.143 --> 00:18:25.873
Today's decision on pillars
was crucial.

00:18:25.994 --> 00:18:30.002
Whether there will be 7 or 8
is currently less important.

00:18:30.123 --> 00:18:34.895
It is entirely possible
that the number will later change

00:18:35.016 --> 00:18:39.197
based on social dialogue,
in this case with unions.

00:18:39.318 --> 00:18:42.920
We are flexible enough
regarding this

00:18:43.041 --> 00:18:47.921
and we are not rejecting
solutions that may work better.

00:18:48.444 --> 00:18:52.147
Urška Mlinarič, Večer.

00:18:52.569 --> 00:18:58.311
Is the current timeline for the
wage reform going to stay the same?

00:18:58.432 --> 00:19:02.663
So, proposal to the
National Assembly by 30.6.

00:19:02.784 --> 00:19:06.301
and then the start
of implementation on 1.1.?

00:19:06.700 --> 00:19:10.043
What is the timeframe
for the wage reform

00:19:10.164 --> 00:19:12.739
and where
will you draw money from?

00:19:13.497 --> 00:19:18.400
Next, you mentioned autonomy
in negotiating salaries

00:19:18.521 --> 00:19:25.129
within the pillars. Could you
elaborate what this means?

00:19:25.387 --> 00:19:27.402
You said that the first step

00:19:27.523 --> 00:19:31.460
are negotiations
on the current salary balances.

00:19:31.581 --> 00:19:34.502
and that the reform
will be based on them.

00:19:34.623 --> 00:19:37.907
Does this mean
you will first start negotiating

00:19:38.028 --> 00:19:42.880
the elimination of salary imbalances
that unions are calling for

00:19:43.001 --> 00:19:48.301
and only after that start
negotiating the reform? Thank you.

00:19:48.987 --> 00:19:53.105
Your last question
also offers the answer.

00:19:53.226 --> 00:19:57.151
The reform is more than just
negotiating salary balances

00:19:57.272 --> 00:19:59.503
or eliminating
salary anomalies.

00:19:59.624 --> 00:20:02.339
That is the first step
of the reform,

00:20:02.714 --> 00:20:06.534
which will continue
in the following months.

00:20:06.683 --> 00:20:12.338
The timeline for implementing the
reform will thus also be longer.

00:20:12.620 --> 00:20:17.388
Establishing autonomy
within the pillars

00:20:17.509 --> 00:20:21.200
will be one of the last
points of the reform

00:20:21.321 --> 00:20:26.495
and definitely won't be done
by 30.6.. We have to be realistic.

00:20:26.798 --> 00:20:31.480
Fully realising the reform
could even take several years,

00:20:31.601 --> 00:20:33.720
just like
with healthcare.

00:20:33.841 --> 00:20:38.194
We will take until the end
of the year to outline it fully,

00:20:38.315 --> 00:20:41.798
but we will negotiate
within the presented frame.

00:20:41.919 --> 00:20:45.423
Let me be clear.
The 1.4. deadline remains.

00:20:45.544 --> 00:20:49.220
We have to reach agreement
with certain groups by then

00:20:49.341 --> 00:20:51.554
on eliminating
salary anomalies.

00:20:51.675 --> 00:20:56.362
The same holds true for 30.6.,
when we will do this for all groups.

00:20:56.891 --> 00:21:00.265
I could list
the additional steps in the reform,

00:21:00.386 --> 00:21:03.726
but they will be presented
in detail next week.

00:21:03.847 --> 00:21:05.828
For instance,
how to establish

00:21:05.949 --> 00:21:09.531
a system of efficient management
in the public sector,

00:21:09.652 --> 00:21:13.696
a system of efficient rewarding
in the public system ...

00:21:14.276 --> 00:21:17.479
All of these
are components of the reform,

00:21:17.666 --> 00:21:21.518
including the establishment
of autonomy in the pillars

00:21:21.713 --> 00:21:25.385
in negotiations
on the allocation of funds.

00:21:26.690 --> 00:21:31.107
Especially the means to increase
funds within the pillars.

00:21:31.228 --> 00:21:35.369
That is also only the next step.
That will be discussed later.

00:21:35.607 --> 00:21:42.411
The reform will be more extensive
than it seemed a month ago,

00:21:42.532 --> 00:21:45.943
because we want to address
all of the questions

00:21:46.209 --> 00:21:52.320
that will arise once the anomalies
and basics are defined.

00:21:53.951 --> 00:21:55.653
Next,
Gregor Drnovšek ...

00:21:55.774 --> 00:22:00.568
Nothing has changed
regarding the provision of funds.

00:22:00.810 --> 00:22:06.091
The funds can only come
from the State budget

00:22:06.212 --> 00:22:11.748
and I think the negotiations will be
accordingly tough and difficult.

00:22:12.154 --> 00:22:15.833
The funds from the budget
will partly satisfy

00:22:15.954 --> 00:22:20.123
ambitions and appetites,
but perhaps not all of them.

00:22:20.633 --> 00:22:23.735
In either case
we will pursue the goal

00:22:23.856 --> 00:22:28.952
of providing a permanent source
of funds for the public sector

00:22:29.073 --> 00:22:35.046
with the savings of this reform
over the years.

00:22:35.726 --> 00:22:39.976
Gregor Drnovšek, RTV.
Regarding the finances,

00:22:40.116 --> 00:22:45.999
what is the possible
range of funds projected for ...

00:22:46.120 --> 00:22:50.132
We will first inform the unions,
not the public.

00:22:50.253 --> 00:22:55.587
The Minister of Public Administration
will talk about this next week.

00:22:55.708 --> 00:23:00.813
The Minister of Finance did present
the coalition with some numbers.

00:23:00.934 --> 00:23:02.558
Was he optimistic?

00:23:02.679 --> 00:23:08.712
Do we currently have
enough funds for the reform,

00:23:08.833 --> 00:23:12.708
which may change further,
to be optimistic?

00:23:12.829 --> 00:23:18.607
Or will we have to look for funds
every year anew?

00:23:19.249 --> 00:23:21.507
No, once the reforms
are adopted

00:23:21.628 --> 00:23:24.272
we will not
look for funds every year.

00:23:24.393 --> 00:23:28.241
We will establish
systemic financing for the reforms.

00:23:28.601 --> 00:23:33.608
A Minister of Finance can never be
too optimistic or generous

00:23:33.729 --> 00:23:35.743
nor was he today,
for 2023.

00:23:35.864 --> 00:23:39.699
He clearly presented
the situation we are in

00:23:39.820 --> 00:23:42.184
and that rebalancing
is necessary

00:23:42.305 --> 00:23:45.816
to provide funds this year
for all reforms,

00:23:46.051 --> 00:23:49.254
from the housing
to the salary reforms.

00:23:49.668 --> 00:23:53.227
Of course we do not have
a final number yet,

00:23:53.348 --> 00:23:57.309
so we also do not have
the basis to change the budget.

00:23:57.430 --> 00:24:00.325
But we will have
negotiation points

00:24:00.613 --> 00:24:06.285
and final numbers will be determined
by the negotiations, not sooner.

00:24:06.458 --> 00:24:08.527
Regarding the housing reform,

00:24:08.648 --> 00:24:13.347
the terrain will be prepared by 2026
for the 3000 apartments per year.

00:24:13.468 --> 00:24:20.281
How much money will have to be
injected into the Housing Fund

00:24:20.546 --> 00:24:25.750
for this to become
operational after 2026?

00:24:26.320 --> 00:24:28.679
That's not entirely right.

00:24:28.859 --> 00:24:33.960
From 2026 onwards there will be
a long-term sustainable system

00:24:34.081 --> 00:24:38.046
that will produce
3000 new apartments every year.

00:24:38.359 --> 00:24:43.671
We intend to produce 5000 apartments
per year by the end of this term.

00:24:44.593 --> 00:24:48.832
We need some time
to set up the entire system.

00:24:49.069 --> 00:24:51.513
The funds
will follow this dynamic.

00:24:51.634 --> 00:24:55.281
Once the system with
3000 apartments is set up,

00:24:55.402 --> 00:25:00.007
about 100 million EUR annually
will be provided from the budget.

00:25:00.187 --> 00:25:04.304
Until then we will adapt
the funds to actual needs.

00:25:04.425 --> 00:25:08.203
I think it is 10 million this year?
More? Less?

00:25:08.324 --> 00:25:13.101
Apparently there is 25 million EUR
of additional funds this year.

00:25:13.367 --> 00:25:15.718
Next?
-Tadeja Magdič, Planet.

00:25:15.890 --> 00:25:18.850
Public sector unions
are already planning

00:25:18.971 --> 00:25:21.538
three large rallies
in February.

00:25:21.765 --> 00:25:23.961
You already
answered partially.

00:25:24.082 --> 00:25:26.699
When will you
present the unions

00:25:26.820 --> 00:25:30.926
the starting points
you talked about today?

00:25:31.432 --> 00:25:36.085
The Minister of Public Administration
talked to them in the past week.

00:25:36.206 --> 00:25:38.643
Negotiations
are already under way.

00:25:39.245 --> 00:25:43.518
I am not sure about the date
for their next meeting.

00:25:43.639 --> 00:25:48.487
I'm sorry, I'm sure the unions
know better than we do.

00:25:48.768 --> 00:25:54.682
Jokes aside, we now have confirmed
starting points for the whole reform

00:25:55.011 --> 00:25:58.464
as well as guidelines
on how to approach

00:25:58.585 --> 00:26:01.541
the elimination
of salary anomalies.

00:26:01.869 --> 00:26:04.143
The coalition
is united in this.

00:26:04.303 --> 00:26:07.530
This provides the Minister
with a good mandate

00:26:07.651 --> 00:26:10.690
with which
she can enter negotiations

00:26:11.083 --> 00:26:15.205
without any need for stalling

00:26:15.550 --> 00:26:19.470
and without worrying
about having our support.

00:26:20.042 --> 00:26:22.042
Any other questions?
Yes?

00:26:23.971 --> 00:26:26.268
Gašper Lubej,
Al Jazeera Balkans.

00:26:26.389 --> 00:26:30.964
You talked about the housing
policy, but not about taxes,

00:26:31.085 --> 00:26:35.101
so the sources for financing
such ambitious goals

00:26:35.222 --> 00:26:37.387
like 100 million a year.

00:26:37.508 --> 00:26:43.770
Can we assume the property tax
will not change, or will it?

00:26:43.891 --> 00:26:45.770
No,
you assume incorrectly.

00:26:45.918 --> 00:26:49.191
We have not
discussed this yet.

00:26:49.489 --> 00:26:55.098
As we said, today we wanted
to conclude two points.

00:26:55.433 --> 00:26:57.714
If we had the time,
we'd move on.

00:26:57.835 --> 00:27:02.755
Our next coalition summit is on the
21. or 22., so within 14 days,

00:27:02.876 --> 00:27:08.581
and the first point on the agenda
will be tax policy.

00:27:08.881 --> 00:27:13.787
So do not ask me about it today,
we will talk about it in two weeks.

00:27:14.295 --> 00:27:16.239
I think you have to appoint

00:27:16.360 --> 00:27:19.935
a new Minister of the Interior
by end of Februrary.

00:27:20.056 --> 00:27:23.661
Have you perhaps narrowed down
the list of candidates?

00:27:23.782 --> 00:27:26.198
No. This proposal
will be discussed

00:27:26.319 --> 00:27:28.955
during regular session
on February 20.

00:27:29.151 --> 00:27:32.525
We still have enough time
and talks are ongoing.

00:27:32.646 --> 00:27:38.791
I hope the candidates
will also present their teams.

00:27:39.109 --> 00:27:42.148
We cannot make
any conclusions yet.

00:27:43.554 --> 00:27:47.828
Are we done?
Thank you, a good day to you all.