On 12 November the Ministry
of Finance and the Trade Union of Chemical, Non-Metal and Rubber Industries of
Slovenia (Sindikata kemične, nekovinske in gumarske industrije Slovenije – KNG)
continued negotiations over the union’s plan to collect signatures to force a
national referendum on recapitalizing Slovenia’s troubled banks. The union, which views a bailout as being in
the interest of workers and the nation as a whole, intends to force the issue
via a nationwide referendum, and beginning on 19 November the union will have a
period of 35 days to gather signatures from voters nationwide, with 40,000
signatures needed in order to compel a referendum. The government is committed to avoiding any
bailout of the “bad banks” (slabe banke), and instead plans to implement a
national “holding company” (družba za upravljanje terjatev bank – DUTB) for
troubled banks as stipulated in a law adopted by the National Assembly on 23
October but not yet in force, the Law on Measures of the Republic of Slovenia
for the Strengthening of Bank Stability (Zakon o ukrepih Republike Slovenije za
krepitev stabilnosti bank – ZUPSB). The
two sides have been negotiating over the proposed referendum since 23 October; neither
the Ministry of Finance nor the union shows any sign of yielding, but the
government has declared that it will be satisfied so long as the negotiations
continue.
Related: Ministry of Finance: News: S
& P announced the possibility of new downgrade of the credit rating of
Slovenia (CreditWatch Negative) (2012-11-06)
Mark Pleas
[contact]
