Republic of Slovenia: Selected Issues

Volume/Issue: Volume 2006 Issue 250

Publication date: July 2006

ISBN: 9781451835786

$20.00

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Exports and Imports , Labor , Economics- Macroeconomics , Public Finance , Demography , ISCR , CR , Slovenia , expenditure reform , chapter VI , productivity growth , trade specialization pattern , chapter III , pension base , Pensions , Pension spending , Aging , Health care spending , Retirement , Europe , Western Hemisphere

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Summary

This paper provides a background on the key policy challenges for Slovenia in the euro zone. Then, it assesses the discretionary scope to adjust spending and proposes initial steps to enhance budget flexibility so that fiscal adjustment can be targeted on relatively inefficient spending. This study also discusses the long-term fiscal sustainability position of Slovenia using a generational accounting framework. A simulation of retirement incentives suggests that the pension system will encourage individuals to retire earlier than the statutory full pensionable age. These incentives are stronger for low-income earners.