The Slovenian government is expected to submit to the European Commission the details of its new austerity package shortly, which includes large scale privatizations and tax increases.
The package, unveiled by Prime Minister Alenka Bratusek on Thursday, is aimed at restoring the country's public finances and averting an EU-led international bailout. The plan is estimated to raise EUR 540 million in revenue.
Under the new package, the government pledged to sell-off 15 state-owned firms, including the country's second largest bank, leading telecoms operator and the national airline.
The government also plans to increase the Value-Added Tax to 22 percent from 20 percent from July 1. The VAT hike was originally planned for 2014. Furthermore, a new property tax will be introduced from 2014.
The package is expected to be submitted to the Commission shortly. The EU is likely to conclude discussion on the plan before the end of the month.
Slovenia has been struggling with a recession-hit economy and rising public debt since 2011. Recently, there has been widespread concern that Slovenia may become the next euro area member to seek a bailout.
Earlier this month, Moody's Investors Service downgraded Slovenia's credit rating to 'junk' status. The rating agency said the risk that Slovenia may require external assistance to meet its financial obligations has increased, largely due to uncertain funding prospects.
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