Strasbourg – The European Commission has deemed the Slovenian medium-term fiscal-structural plan, prepared in accordance with the new EU fiscal regulations, to be appropriate. Additionally, the Commission noted that Slovenia’s draft budget plan for 2025 aligns with the recommendations of the EU Council.
The fiscal-structural plan allows for an average annual increase in net expenditures of 4.5 percent over the next four years. It projects a reduction in the public finance deficit, from 2.9 percent of gross domestic product (GDP) in 2024 to 1.2 percent of GDP by 2028. Concurrently, the state debt is anticipated to decline to 61.2 percent of GDP during this period.
In line with this plan, the government has proposed a draft budget for 2025, which the Commission considers consistent with the EU Council’s recommendations issued in October. These recommendations urged Slovenia to cap the growth of net expenditures according to the newly established fiscal rules, to maintain the fiscal sustainability of social security systems, and to reform tax revenues to foster economic growth.
The draft budget for 2025 aims to lower Slovenia’s public finance deficit to 2.6 percent of GDP, while gross debt is expected to decrease from 67.5 percent of GDP in the current year to 65.4 percent of GDP. Last week, the National Assembly approved the budget modifications for 2025.
Today, Brussels released the first autumn package of the European semester, which focuses on coordinating economic and fiscal policies across the EU in light of the new fiscal regulations. The Commission announced that once the medium-term fiscal plans are ratified by the EU Council, they will oversee their execution by member states. These states will be required to submit annual reports to Brussels detailing the progress of implementing the plans. (November 26)
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