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Slovenians Reject Pension Overhaul

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Slovenians’ rejection of a government pension overhaul that had the support of European Union leaders adds to concern about public spending and a possible credit rating cut for the richest former Yugoslav republic.

About 72 percent of voters rejected the proposal in a referendum yesterday to extend the retirement age to 65 year from an average 60, while about 28 percent backed the move, the central electoral commission said on its website.

Voters were unmoved by leaders including German Chancellor Angela Merkel and EU President Herman Van Rompuy, who campaigned for the overhaul as the aging population strains a budget already depleted by one of the deepest recessions in the euro region in 2009. Slovenian Prime Minister Borut Pahor is struggling to cut public spending amid a slow economic recovery.

“The way this can be interpreted is the people in Slovenia are against reforms,” Pahor told reporters in Ljubljana last night. “I don’t want to give the feeling that we want to stay in power at all costs.”

Merkel’s government said on June 3 that Slovenia’s initiative to raise the retirement age is “a good idea,” while Van Rompuy said Slovenians will have to implement pension changes “sooner or later.” The IMF said on May 31 “pension expenditure poses a challenge to fiscal sustainability.”

The result will give the opposition leaders a boost in their drive to force early elections. The next scheduled elections are in 2012.

“Voters rejected a bad solution as they believe there is a better one,” Janez Jansa, the leader of the Slovenian Democratic Party, the largest opposition group, said after the vote in Ljubljana. Polls suggest Jansa’s party would win an early vote.

“The government lost five referendums in a year and local elections as well so in a normal state this would mean the resignation of the ruling coalition,” he said

The no vote will deepen the debt burden and hamper the nascent economic recovery, central bank Governor Marko Kranjec has said. Credit ratings services, including Standard & Poor’s have warned about the credit score cut if the government fails to rein in spending.

The Adriatic nation is rated AA at S&P, the third-highest investment grade on a par with Spain and higher than Portugal or Italy. Slovenia spends 1.3 billion euros ($1.9 billion) a year to cover the shortfall in the pension system, which is “unsustainable,” Finance Minister Franc Krizanic said.

Budget Target

The nation of 2 million people needs to cut the budget deficit to below 3 percent of gross domestic product by 2013 to meet European stability rules. The gap will widen to 5.8 percent of GDP this year from 5.6 percent in 2010, with debt rising to 42.8 percent of GDP from 38 percent, the EU has estimated on May 13.

Its export-driven economy slowed in the first quarter as a drop in the construction industry outweighed gains in exports and industrial output. GDP economy expanded 2 percent from a year earlier, compared with 2.1 percent in last quarter of 2010, the statistics office said May 31.

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Credit rating cuts are the new weapons of mass financial destruction, targeted by the bankster elite at countries that rebel against their exploitation by the banksters.

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More pensions madness and disaster. I dont know why so many people think that they can work from 21 til 60 in this case, and live to 85, and have the state fund all of that, it just doesnt make any economic sense at all. In this country our politicians are hinting at raising the retirement age to 70. I reckon we should just do away with the state pension asap and replace it with a general citizens income.

Still, countries with a population as economically inept as Slovenia will get what they deserve, and if people only work for a fraction of their lifetime, that wont be much. I certainly dont intend to buy any Slovenian bonds any time soon.

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I believe the average Slovenian is better informed than most Europeans.

Looks like you’ve fallen for this “We are all living longer now and must work till we drop” propaganda; the problem is that there is not enough work to go round, in just about every part of the economy the same work can be done with a fraction of the human effort that was necessary 50 years ago. A lot of Young people in Slovenia can’t get work, surely it’s better to have a 25 year old driving a bus than a 70 year old etc…

Still, countries with a population as economically inept as Slovenia will get what they deserve, and if people only work for a fraction of their lifetime, that wont be much. I certainly dont intend to buy any Slovenian bonds any time soon.

Edited by PricedOutNative

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I believe the average Slovenian is better informed than most Europeans.

Looks like you’ve fallen for this “We are all living longer now and must work till we drop” propaganda; the problem is that there is not enough work to go round, in just about every part of the economy the same work can be done with a fraction of the human effort that was necessary 50 years ago. A lot of Young people in Slovenia can’t get work, surely it’s better to have a 25 year old driving a bus than a 70 year old etc…

We will see who is right. I guess you could have paid retirement at 60 if you can raise tax rates on those working to about 70% plus, and enforce that tax.

More likely things will go wrong, just like Greece.

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Complete failure of the current system, a period of chaos (similar to Russia in the 1990’s) then hopefully a new system.

Many people, even those that have great power and wealth seem unable to grasp that everyone tightening their belts, with out current model of capitalism will result in a speedier collapse, keeping your car longer, cutting your own hair, going out less to eat/shop/on holiday will all result in less employment and a contraction of the economy making us all poorer…

I’m not sure when the system is going to collapse, it could be this year it could be 10 years but I guess it’s going to happen within 20…

We will see who is right. I guess you could have paid retirement at 60 if you can raise tax rates on those working to about 70% plus, and enforce that tax.

More likely things will go wrong, just like Greece.

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who wants a 65 year old IT engineer?

Or a 40 year old one come to that.

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As our IT manager used to say; anyone still coding at 40 is a looser, by then anyone worthwhile would be in management...

I always thought there are only so many manager positions..

who wants a 65 year old IT engineer?

Or a 40 year old one come to that.

Edited by PricedOutNative

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As our IT manager used to say; anyone still coding at 40 is a looser, by then anyone worthwhile would be in management...

I always thought there are only so many manager positions..

more management ******

so, at 40, you been at the job for 20 years. that leaves 40 years to manage....that means 2 managers for every worker.......:ph34r:

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  • 317 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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