Skip to main content

Minister: Slovenia can avoid bailout despite shrinking economy

By the CNN Wire Staff
updated 3:57 PM EST, Tue November 20, 2012
STORY HIGHLIGHTS
  • Slovenia will be able to stave off a bailout, the country's finance minister Janez Sustersic says
  • The country's economy is in recession and its downturn is expected to continue next year
  • The country is driving through privatizations, pension and labor reforms to recover
  • Sustersic said the country was better off being in the euro, despite the financial crisis

(CNN) -- Slovenia will be able to stave off a bailout by driving through changes including bank restructurings, privatizations, pension and labor reforms, the country's finance minister Janez Sustersic told CNN.

Sustersic's comments come as European policy makers meet in Brussels to debate the latest tranche of aid for Greece, which has pushed through harsh austerity measures in return for access to a financial lifeline.

Eurozone's reluctant leader

Fears Slovenia may also need a bailout have been heightened by the European Commission Autumn European Economic forecast noting the country was suffering "strongly negative growth," with the downturn likely to continue well into 2013.

Europe-wide protests

However, Sustersic said Slovenia was drafting legislation and drawing up a new budget which would assist in pulling the country out of its recession.

Greek politician: We need money now

Eurozone risks prolonged recession

Tsipras: Austerity killing Greece

"There is some political deadlock, some political maneuvering, we also have some referendums announced, but regardless of that I think we can find ways to implement the measures that are necessary," he told CNN.

And while countries were unhappy with the situation in Greece, there was recognition of the Greek government's efforts in driving through austerity measures, and the country would get some leeway, he noted.

Greece: When anger turns to despair

"It will be a hard debate because a lot of countries are quite unhappy with the way things have evolved in the past, in Greece," he said.

However, "I think finally there will be an agreement on the extension of the targets...and a lot of debate about how to finance this extension."

Sustersic added he was glad Slovenia was part of the troubled eurozone, the 17-country common currency bloc which has been immersed in a financial crisis more than two years.

"We were hit by the financial crisis very strongly, but that was mainly due to our own uncompetitiveness, and the lack of structure," he said. He added: "It was not due to the euro."

ADVERTISEMENT
Part of complete coverage on
Quest Means Business
updated 7:15 AM EST, Thu November 8, 2012
The U.S. has about a one-in-three chance of falling off the fiscal cliff if political dysfunction holds sway in the U.S., says Mohamed El-Erian, Co-CEO of PIMCO, the global asset management firm.
updated 3:41 PM EST, Thu November 15, 2012
BP admits criminal responsibility for Deepwater Horizon spill and settles with U.S. authorities. Matthew Chance reports.
updated 2:06 PM EST, Tue November 13, 2012
Alexis Tsipras, leader of Greece's far-left Syriza Party, says forgiving Greek debt, not austerity is the solution.
updated 1:01 PM EST, Mon November 5, 2012
Richard Quest arrives in San Francisco at the end of his American Quest across the U.S. He find a beautiful city, in a state which is feeling the pinch of austerity.
updated 9:26 AM EDT, Fri November 2, 2012
Richard Quest visits Brigham Young University -- also known as the Mormon University -- where Mitt Romney graduted in 1971.
updated 12:02 PM EDT, Thu November 1, 2012
Colorado, is one of these "undecided" states, which have become crucially important in this election.
updated 7:28 AM EDT, Thu November 1, 2012
In Iowa, Quest finds the "role of government" theme is at the heart of the election, permeating all of the country's issues.
At a time when just about everyone in America is following the presidential election, this is one group are letting the event pass them by.
updated 9:20 AM EDT, Mon October 29, 2012
obama romney food
The latest polls are clear -- President Barack Obama will carry his home city and state of Illinois in his battle for re-election by a large majority.
updated 2:18 PM EDT, Mon October 15, 2012
Woooooh... Wooooh. The very sound of the Amtrak train horn is among the most evocative bits of Americana, ploughing its way across the country.
updated 6:33 AM EDT, Thu September 27, 2012
Jaguar has revealed its new sports car -- which the luxury brand's boss tells CNN showcases a "quintessential Britishness."
updated 10:45 AM EDT, Wed October 3, 2012
The power of fuel will be overtaken by electric energy in a new global auto race being used to showcase eco-friendly cars.
updated 7:32 AM EDT, Mon October 8, 2012
CNN's Richard Quest takes you inside London's smallest apartment. It can be yours for a few hundred thousand dollars.
updated 8:58 AM EDT, Wed October 3, 2012
Sebastian Pinera says he hopes Chile becomes a developed country by 2020.
The Federal Reserve "printing money" will never solve the economic problems in the U.S., Chilean President Sebastian Pinera has told CNN.
updated 11:21 AM EDT, Mon October 1, 2012
The European Commission's president Jose Manuel Barroso says a federation of Europe is "unavoidable" if the embattled euro currency is to survive.
ADVERTISEMENT