Skip to main content

Prime Minister Janez Janša: "We’re not planning any cuts, we’re planning recovery."

  • Former Prime Minister Janez Janša (2020 - 2022)
At today’s 63rd extraordinary session of the National Assembly, Prime Minister Janez Janša responded to questions from deputies mag. Alenka Bratušek from SAB, Zmago Jelinčič Plemeniti from SNS, Marjan Šarec from LMŠ and Anja Bah Žibert from SDS about the effects of the adopted anti-crisis measures, reopening of catering establishments, government measures in the field of public finances, the national vaccination strategy, and measures for containing the spread of COVID-19 and mitigating the consequences of the epidemic.

Deputy Bratušek asked the Prime Minister about the effects of the adopted anti-crisis measures, their long-term consequences, and the effect on the country and public finances. In his reply to the question and claims about over-indebtedness at the time of the epidemic, the Prime Minister emphasised that funds borrowed by Slovenia last year were intended for the people and the economy to preserve jobs. Slovenia went into debt, but it did not indulge in over-borrowing and its indebtedness was below the EU average. He also highlighted that Slovenia borrowed money at a favourable rate during the epidemic. Bonds with negative interest rates were issued, which means that the taxpayers will return less than Slovenia borrowed. He emphasised that money was spent on saving banks several years ago. "Among these were two tycoon banks in which you invested half a billion euros so that those who would have become bankrupt at the time if these debts had been recovered are today enjoying their yachts and Porsches and buying villas in Ljubljana." On this note, he also added, "You borrowed with a 5- to 7-per cent interest rate. Furthermore, you refused to accept cheap money from the European bank resolution mechanism because that money was subject to conditions on the basis of which you’d be unable to rehabilitate those tycoon banks, so instead you made Slovenian taxpayers and their future generations pay for the rehabilitation of banks. That’s the difference." In his reply to the deputy question, the Prime Minister again rejected the untruth that the number of COVID-19 deaths was highest in Slovenia and that schools in Slovenia were closed for the longest period. Not a single school day was lost in Slovenia due to distance learning "because the Ministry of Education prepared for the second wave and organised all necessary programmes for the distance learning of primary school pupils and secondary school students." Regarding the COVID-19 deaths, the Prime Minister stressed that every death was one too many and regretted, but that data compiled at the end of the epidemic would be crucial.

To the question of Deputy Zmago Jelinčič Plemeniti relating to the reopening of catering and accommodation facilities, the Prime Minister replied that there was no country in Europe with an average daily number of infections similar to that of Slovenia where catering establishments would be open. "With an incidence rate like ours, such an example can’t be found anywhere." He also highlighted that the catering industry, together with the tourism and events organisation sectors, was one of the most affected industries and that a great proportion of aid was earmarked for this sector. With regard to the number of infections and the occurrence of new coronavirus strains, it is necessary to weigh the priorities. "The virus doesn’t spread on its own. It spreads through contact and containing the spread of the virus means restricting contacts, especially risky ones. And after one year, we have some idea to what extent a certain activity contributes to risky contacts." This principle is also observed by the epidemiologists who dictate government measures. When weighing between restaurants and schools, the latter prevail in accordance with the priorities. The Prime Minister also noted that the opening of restaurants and terraces depended particularly on the citizens and their observance of the measures that prevent the spread of the infection. He pointed to the possibility of a third wave of the epidemic and the spread of new coronavirus strains. With regard to these risks, a too rapid easing of measures and the opening of activities are not suitable. The foregoing will be possible in the yellow phase, and the Prime Minister asked the citizens to do everything possible to improve the epidemiological situation.

To the question of Deputy Marjan Šarec as to whether the Government was planning any cuts in citizens’ income or savings, the Prime Minister replied that the Government was not planning any cuts, but a recovery. He further highlighted that the data showed that the macroeconomic year in 2020 ended significantly better in Slovenia than forecast in May and also better than forecast by the European Commission in the same period. Economic growth in 2020 was higher than forecast. According to the assessment of the Statistical Office of the Republic of Slovenia, GDP dropped by 5.5 per cent in real terms in 2020, which was less than anticipated by the Institute of Macroeconomic Analysis and Development. A 7.1-per cent drop in GDP was forecast for Slovenia. "Relating to the assessment of government measures to mitigate the situation, the data on unemployment trends in 2020 is even more encouraging. Despite the epidemic, the unemployment rate increased by merely one per cent in 2020. "The number of unemployed persons is currently below 90,000, significantly below 90,000, and that is, to a great extent, due to the measures proposed by the Government and adopted by the National Assembly to preserve jobs. We’re therefore relying on a faster recovery as those who are now unable to perform certain activities will be able to perform them once again after the end of the epidemic." The Prime Minister also stressed that Slovenia experienced the fastest growth in the construction sector in Europe in 2020, an increase of 18 per cent. "That doesn’t mean that we have done so well, but it means that you didn’t build much in recent years because the money went to the Metelkova Street and the former Rog factory, which resulted in poor investment activities. There was a decline in the tourism and catering industries, which contributed for the most part to the drop, the real drop of GDP by 5.5 per cent." The Prime Minister added that the Government believed that last year’s drop would be compensated for this year due to favourable conditions and the economy having been preserved to a great extent. "Exports, which is the motor and not the Achilles’ heel of Slovenian economic growth, declined minimally in 2020 as the economy responded effectively to the changed conditions. So the picture is not black and white and it’s better than the forecast."

In the continuation, the Prime Minister said that all credit rating agencies, which assessed Slovenia’s credit rating in 2020 as good or stable, had upgraded their ratings. "For the first time in history, Slovenia issued a 60-year bond and a bond with a negative interest rate in 2020. Show me someone who obtained cheaper money on the market in the history of this country."

In his reply to the question of Deputy Anja Bah Žibert about how he assessed Slovenia’s current fight against the epidemic, particularly in the light of vaccines, the Prime Minister replied that the experts were at the moment especially considering the option of sending secondary school students back to schools. "The experts are examining whether it is possible to reduce contacts to such a degree that education by means of alternate weeks of home-schooling and attendance in schools would be possible for secondary school students of the first, second and third years. The Government will decide on the matter this week. The second issue is the possible fast spread of new coronavirus strains in the next few weeks. "According to the currently available data, all the discovered variants, i.e. more dangerous strains of the virus, are present in Slovenia. A dilemma arises "should risky contacts be reduced gradually in accordance with the anticipated schedule and the dynamics, or should public life be actually halted for a shorter time, as has happened in Great Britain or as this is being realised in the Czech Republic today." The Prime Minister believes that this is not just an expert dilemma, but a political decision. “One option denotes a severe restriction for a shorter time, while the alternative includes longer restrictive measures that would maintain the health system at the brink of its capacities. The situation with capacities is currently favourable or significantly better than in the past. Realistically assessed, the number of infections is closer to the red phase than to the orange one, while capacities in the health system show that we are closer to the yellow phase than the orange one." With regard to the foregoing, Slovenia will even be able to help other European countries. "The situation may later change and if this indicator becomes unfavourable, it’ll be necessary to decide whether severe restriction will be put in place for a shorter time or we’ll have to maintain a balance at the brink of capacities of our health system."

To the additional question of Deputy Anja Bah Žibert concerning what can be done specifically for the economy to persevere and be ready for the time after the epidemic and how many people have received help through the measures adopted in the anti-corona packages, the Prime Minister replied that Slovenia was facing a similar situation to that of certain other European countries. These countries were successful in the first wave of the epidemic and did not suffer great losses. On this basis, in the opinion of the Prime Minister, a certain political philosophy has developed, which in some countries, including Slovenia, has been exploited by the opposition. It opposed the measures that needed to be taken as a matter of urgency at the beginning of the second wave of the epidemic. And that is why the measures were not as effective as they had been in the first wave. Because the virus spreads in accordance with its own laws and has no political hue, it is crucial that, "The larger the majority engaged in containment, the lower the price, and the more lenient the measures can be." The price for containing the virus is directly proportional to the engagement of the majority. It is different in the countries which suffered great losses in the first wave of the epidemic. They took the measures in the second wave seriously. When concluding his reply to the deputy question, the Prime Minister highlighted that greater political unity would be necessary during the epidemic, "but a section of Slovenian politics exploits the epidemic to aid its struggle for power and the result is evident."