Another Europe News
Slovenian PM says things are tough, but no bailout – economy
http://www.euronews.com/ Slovenia’s prime minister has said her country will not need an international bailout to avoid going bankrupt.
Alenka Bratusek made the statement during a visit to Brussels, after a damning report from the Organisation for Economic Cooperation and Development on the country’s economy and particularly its banks.
Bratusek said it will not be easy but her government is moving ahead with a cleanup of the mostly state-owned banks: “We are aware that the banking system and its challenges are the number one problem in Slovenia. My assessment is that we can deal with most of these toxic bank loans by moving them to a so-called bad bank which we will be doing in June.”
Slovenia, which was the first country to break away from the former Yugoslavia in the 1990s, is the only ex-communist European Union state that had declined to privatise most of its banking sector.
With so many loans on their books, which are not going to be paid back, the country’s banks are loath to make new loans, which is pushing the economy deeper into recession.
However Brussels dismissed the idea that Slovenia was the new Cyprus.
European Commission President Jose Manuel Barroso said: “Slovenia is indeed the country – of all the member states of the European Union – where the relative dimension of the financial sector is smaller compared to the overall GDP, so it’s at least abusive to make a comparison on that ground with Cyprus.”
The scale of Slovenia’s problem is much smaller, but it faces a difficult time raising cash to recapitalise the banks.
Adding to the pressure Slovenia’s borrowing costs continue to rise ..
with investors reluctant to buy government bonds particularly after the OECD report.
And Prime Minister Bratusek admitted it is too optimistic to expect the country to reach a balanced budget by 2015.
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‘Zero tolerance policy’ for corruption, EU justice commissioner McGrath tells Euronews
‘Zero tolerance policy’ for corruption, EU justice commissioner McGrath tells Euronews
Exclusive: With corruption in Hungary and Spain squarely thrust into the limelight, the EU’s justice chief Michael McGrath spoke to Euronews about fraud across the European Union – warning that without reforms, grafting festers and “takes from valuable public resources”.
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Somali World Cup referee Omar Artan receives warm welcome home after being denied entry to US
Somali World Cup referee Omar Artan receives warm welcome home after being denied entry to US
Andrew Giuliani, who is leading the White House task force for the FIFA World Cup, has said Artan was denied entry to the US for a “very good reason,” without offering further details.
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Neighbourhood Social Workers offer a ‘ray of light’ to poor and vulnerable in Cyprus
Neighbourhood Social Workers offer a ‘ray of light’ to poor and vulnerable in Cyprus
As the EU launches its Anti-Poverty Strategy, a programme in Cyprus is offering a ‘ray of light’ to people facing poverty and social exclusion.
In partnership with the European Commission
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