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Prime Minister Golob: Flexibility should be the guiding principle of the reform of the fiscal rules

The consultation on the EU Economic Governance Framework Reform at Brdo pri Kranju was opened by Prime Minister Robert Golob, who stressed the importance of fiscal rules for the stability of public finances and the need to adapt the rules to new challenges and reality. Fiscal rules need to be reintroduced, and flexibility and a balance between investment and the sustainability of public finances will be key.

Prime Minister and European Commissioner | Author STA/Anže Malovrh

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“A new definition of 'flexible' must be agreed, because now we all see it differently. This definition could be very important for the development of our economies and the EU in general,” the Prime Minister said. Flexibility needs to be at the forefront in more areas than just fiscal rules. This includes state aids, energy market restructuring etc. “This is because the pace of changes is relentless and we are slipping from one crisis to the next,” added the Prime Minister. In uncertain times, flexibility is key to a swift and appropriate response.

During the epidemic and the energy crisis, Slovenia took the opportunity to temporarily freeze the fiscal rules, which was very helpful according to Robert Golob. “We will now address the pressing areas as a matter of priority, while maintaining the sustainability of public finances. We plan to comply with the fiscal rule to the maximum extent in 2024 and we are currently optimistic about it,” the Prime Minister announced.

As set out in the National Recovery and Resilience Plan, Slovenia is facing an overhaul of the pension, tax and education systems. We will work hand in hand to ensure sustainable public finances, but also growth and investment. That is why, according to the Prime Minister, we need fiscal rules that support the sustainability of public finances on the one hand, and provide room for bold investment on the other. “We should not forget the opportunities for investment,” he concluded.

On the sidelines of the conference, the Prime Minister also met with Paolo Gentiloni, European Commissioner for the Economy, to discuss the implementation of Slovenia's Recovery and Resilience Plan.