Slovenia's CB governor warns political crisis could force bailout

Slovenian central bank governor Marko Kranjec said the political crisis engulfing Slovenia's prime minister could undermine efforts to stabilise public finances and force the euro zone member to seek a bailout, Reuters reports.Three junior members of Slovenia's coalition...

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Slovenia's CB governor warns political crisis could force bailout



bne - 17.01.2013

Slovenian central bank governor Marko Kranjec said the political crisis engulfing Slovenia's prime minister could undermine efforts to stabilise public finances and force the euro zone member to seek a bailout, Reuters reports.

Three junior members of Slovenia's coalition government have called on Prime Minister Janez Jansa to quit over an anti-corruption report issued last week that raised questions over the source of part of his income.

"The political crisis is very problematic because its worsening would slow down the stabilisation and consolidation measures," Kranjec, who also sits on the European Central Bank's governing council, told Reuters on Wednesday. "If the measures slow down or even change their direction I fear a moment may come when we'll discover that we cannot take on new debt or that taking it would be too expensive," he said.

Source: bne


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