The government guarantees social peace, however, the future is less promising

100 days of Marjan Šarec’s government

17. december 2018 ob 11.19 • Ljubljana - MMC RTV SLO

Social peace at the end of the year is guaranteed, however, the prospects for the years to come look less promising. Foto: BoBo

Negotiations with the public sector, the rise of the minimum wage and the amending budget are just some of the topics which marked the first three months of the government. Social peace at the end of the year is guaranteed, however, the prospects for the years to come look less promising.

It has been almost 100 days since the start of the government of Marjan Šarec. During this time, the public and the opposition were supposed to be more lenient to the new team. Of course, the new government could not count on the first 100 days of peace. During this time, Šarec had already replaced one of the ministers, and the public witnessed some more or less serious coalition clashes, the opposition demanded some extraordinary parliamentary sessions and threatened with constitutional accusation.

The new government took over the authority during the exceptional economic growth, which was driven by employment. However, this will decrease in the future. No wonder, since there are already shortages of skilled workers, and the aging of the population is also showing its effects. The government will supposedly not go into the pension reform. The international institutions, however, believe now is the right time for the pension reform as for other structural measures. "Let me make it clear, now is the time for measures, as long as you have growth,” said Bernardin Akitoby from the International Monetary Fund.

Wage growth will be higher this year, for around 4 percent and next year, adaptation costs will increase as well. Especially in the public sector, which won the fight for higher salary grades and bonuses after the wage increase of the doctors and directors. During the recent agreement between the government and public sector union, the premier Marjan Šarec said: “We must all be aware that there are people in these unions. People who work in different sectors and we will make sure they get something more.”

If, in the upcoming years, the price of the public services rises due to the increase in the wages in the public sector, it will be an additional pressure on the already rising costs of living. Households are cautious and are not spending money without thinking about it, their consumption is limited. Even the companies are carefully investing in new machinery and equipment. Fiscal council gives notice, that the government should also be careful when preparing a budget plan for 2019, otherwise the path of sustainable public finances will be lost. Apparently, the government decided to rise of wages and transfers, which helped many who have warned that they do not feel the impact of the economic growth.