Slovenian FinMin: Greek govt using bailout funds for wage, pension hikes!

Mramor: Greece govt plans to raise pensions, wages and make public sector hirings, while in Slovenia we’re slashing pay and downsizing in all areas

While all eyes are on European paymaster Germany’s — and to a lesser extent the IMF’s — stance vis-à-vis the resurrected “Greek Eurozone issue” in the wake of Greece’s radical leftists’ election win last January, it’s a handful of small and neophyte euro area members that appear the “strictest” in ongoing negotiations.

One such partner is Slovenia, the most developed republic in the one-time Yugoslavia and by far the “biggest success” story to emerge from the breakup of that country in the early 1990s.

According to the Slovenia Times, in a recent editorial, “Our exposure to Greece is 2.7 percent of GDP, which was in a year after we had an 8 percent fall in GDP and when we had to slash pay and economize in all areas.”

Quoting Slovenian FinMin Dušan Mramor: “This is why Slovenia will insist on Greece continuing with the restructuring and continuing to meet its obligations to Slovenia as well as international institutions”, it reported.

“Given such an exposure that Slovenia has toward Greece and the solidarity we have provided, Greece has stated it plans to raise pensions, raise wages, raise employment in the public sector and demand an extra cut liabilities to Slovenia, while in Slovenia we are slashing pay and downsizing in all areas,” the Slovenian minister was quoted as saying.