WEBVTT

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Thank you, Mr Chairman,
Commissioner, distinguished guests.

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Before coming to the speech itself,
I understand that you are

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going to have a very busy day
and a busy schedule.

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So I'll try to be
as brief as possible.

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To start on a lighter tone,

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this is going to be my first speech
ever that I'm going to read,

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because I don't feel confident
enough to address you without it.

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No, but it's an important topic.

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There is one word that I would
like to stress in advance.

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It's a word that we are really using
a lot when we meet in the Council,

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that is flexibility. We are aware
of the need of reestablishing

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the fiscal rules again,
they have their role,

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but we are also aware that
the times are really changing.

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We are falling from
one crisis to another,

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the frequency of crises
is increasing.

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Meaning that flexibility is something
that we need to be not just aware of,

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but we need to be able to cope with.

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When we speak about flexibility,
each of us understands it

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in a different manner
at the moment.

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So we have to come up with
a definition of what flexibility is.

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This definition could really be
of paramount significance

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for the development of the European
Union as a whole, of our economies.

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Because when we are
speaking about flexibility,

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we are not adopting it
only on the fiscal rules,

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but on everything,
on state aids,

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on energy market restructuring
and everything else.

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Flexibility in itself is a word
we're going to hear a lot,

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perhaps not so much today,
but I think we will,

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but we have to come up
with a common understanding of it.

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Coming back
to the rules themselves.

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Slovenia has always
not only recognised,

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but also emphasised
the importance of fiscal rules.

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Our commitment is so deep
that we have demonstrated it

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by an amendment
in our constitution.

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We are also aware that fiscal rules
assure the direction of economic policy

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towards stability and sustainability
of public finances

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in the medium- and long-term.

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By implementing fiscal policies,
we try to control the influence of

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conditions in the economy.

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Especially those like unemployment,
economic growth and inflation.

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This is why, as I said,
I welcome the debate

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on the EU economic
governance reform,

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as we must adapt to the new
reality and new challenges.

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The crises
that we've been rocked by

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had a major economic
and social impact

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and unfortunately,
they are not going to end.

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We must be aware that
the crises are going to stay,

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and we will need
to live with them.

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I'm not speaking
about the pandemic,

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I'm speaking about
all the other changing conditions.

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During the crisis, fiscal rules
were temporarily frozen.

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Which helped a lot.
I need to be honest with you,

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our government
used that opportunity

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in the fiscal year 2023.

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On purpose,
we really stretched the envelope.

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We wanted to help the economy,
to help the population

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cope with the rising
prices of energy.

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That's why the suspension
of the rules was utilised in full.

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There is nothing to hide
regarding that.

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It is also important
to state very clearly

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that we will prioritise
the pressing areas,

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such as healthcare
and long-term care,

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while maintaining
sustainable public finances.

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Starting next year. We understand
and we planned in advance

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that in 2024 we need to stick to
the fiscal rules as much as possible.

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At the moment, we are quite optimistic
that we will be able to do that.

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As we wrote in the National
Recovery and Resilience Plan,

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we will adopt changes
to the pension system

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with the goal of a decent pension
and a long-term system stability.

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We will also adopt measures
in the field of education

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with the aim
of training young people

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in the new paradigm
of green and digital transition.

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The comprehensive tax reform
is under way.

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The direction of it is a balanced
reduction of tax burden on labour

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and an increase in the taxation
of capital or property.

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Hand in hand, our goal is to take
care of sustainable public finances,

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as well as of growth
and investments.

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I certainly believe that we need
a strong and resilient Europe

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that can respond
to the challenges of time.

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For that we need rules
that support sustainability,

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but we also need an economic
governance framework

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that will enable, and this
is the magic word, flexibility

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while also providing space
to invest boldly.

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We should not give away
our investment opportunities.

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To boost our global competitiveness,

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and meet the challenges
of an aging population

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and make Europe a better place,
there is only one way forward.

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Finding the right balance
between investments,

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but also being frugal
when necessary.

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Therefore, I wish you all
a very productive,

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but also bold and innovative
conference today.

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Let's not be afraid of challenging
the existing forms and standards

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and think outside the box.

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I think that the times
that we are facing

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need a lot of thinking
outside the box.

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So I'll be counting on you today

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that you will not be
confined to this room,

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but will also take some inspiration
from the very nice surroundings.

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Thank you very much.