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Slovenia scrambles to avert bailout

May 09 2013 17:42 Reuters

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Ljubljana - Slovenia pledged on Thursday to sell 15 state firms including its second-largest bank, biggest telecoms operator and the national airline under a crisis package to avert an international bailout.

Prime Minister Alenka Bratusek said value added tax would rise from 20% to 22% from July but that the government was still in talks with unions on planned cuts to the public sector wage bill.

She said the budget deficit would soar to 7.8% of national output this year but the government aimed to bring it down to 3.3% in 2014.

Finance Minister Uros Cufer said the package would result in total savings of around €1bn in spending cuts and revenues.

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