Monday, December 5, 2011

Slovenia to turn center right for economic lift (Reuters)

LJUBLJANA (Reuters) ? Slovenians voted for a new government on Sunday with the centre-right opposition set to return to power on a pledge of painful reforms to halt the European Union member's slide back into recession.

Prime Minister Borut Pahor's Social Democrats look likely to be the latest casualty of the euro zone crisis, punished over rising unemployment and the threat of a credit rating downgrade.

"I hope for a high turnout and ... that Slovenia will get a strong new government," opposition Slovenian Democratic Party leader Janez Jansa said on Sunday, casting his vote shortly after polls opened in the town of Velenje in eastern Slovenia.

Jansa, who was prime minister of the former Yugoslav republic from 2004 to 2008, is eyeing a return to office, promising to cut the budget deficit, create jobs and raise the retirement age.

Polls suggest Jansa will regain the premiership but will need the support of smaller parties to secure a majority.

Pahor's government lost its majority in May amid internal policy squabbles and was ousted by parliament in September.

Euro zone member Slovenia, once a model of successful post-communist transition, is facing renewed economic contraction.

An Alpine state of 2 million people, Slovenia was the fastest growing euro zone member four years ago, but its export-driven economy was badly hit by the global crisis and contracted by 8 percent in 2009.

After a modest recovery, data released this week suggest another recession is on the way after the economy shrank 0.5 percent in the third quarter of 2011.

"There are problems in all areas and all of them will have to be tackled, but the (government's) main task is to improve the economic situation," said pensioner Joze Osterc after casting his vote in the capital, Ljubljana.

Jansa's SDS has pledged to cut Slovenia's deficit by trimming public administration and accelerating privatization. He proposes to ease a credit crunch by establishing a "bad bank" that would take over state-owned banks' non-performing loans.

The party would selectively raise the retirement age, currently among the lowest in the EU at 57 for women and 58 for men.

Centre-left Ljubljana mayor Zoran Jankovic is seen as Jansa's closest challenger for the premiership.

Polls close at 7 p.m. (1800 GMT). Preliminary results are expected by 2100 GMT.

(Additional reporting by Miran Jelenek, Editing by Matt Robinson and Tim Pearce)

Source: http://us.rd.yahoo.com/dailynews/rss/eurobiz/*http%3A//news.yahoo.com/s/nm/20111204/wl_nm/us_slovenia_election

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