Strasbourg – The European Commission has cautioned that Slovenia’s budget plan for 2026 may not align with European public finance regulations, as outlined in its autumn package of documents for the European semester. The Commission called on Slovenian authorities to implement necessary measures during the budgeting process to ensure compliance with these rules.
Brussels evaluated that Slovenia’s draft budget plan for the upcoming year could contradict its medium-term fiscal-structural framework for 2025-28. Consequently, Slovenia is required to limit the increase in net public finance expenditures to 4.5 percent annually. For this year, the allowable growth is capped at 5.6 percent, while for 2026, it is set at 4.4 percent. The total expenditure growth must not exceed 12.1 percent this year compared to 2023, and 17 percent in 2026.
According to the autumn economic forecast released last week, Slovenia’s net public finance expenditure growth for the following year is projected at 19 percent, which signifies a deviation of 0.8 percentage points from gross domestic product (GDP). With consideration of the national deviation clause intended for increased defense spending, this deviation adjusts to 0.2 percentage points of GDP, as clarified by the Commission.
This minor deviation appears to stem from the introduction of a mandatory winter or Christmas bonus for all employees in Slovenia, including those in public service. Had this bonus not been implemented, Brussels would likely not have issued the warning.
In this context, the Commission has urged Slovenia’s authorities to take the necessary steps within the national budgetary process to ensure that the country’s fiscal policy next year aligns with the medium-term plan, although it did not specify what those measures should entail. (November 25)
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