Stability Before The Standard Of Living

What is the concept of economic measures which you have started to effectuate in Slovenia?

In contrast to Serbia, we, thank God, live in peace and economic stability, with a controlled and truly low inflation of about 1% to 2% per month and a correspondingly stable currency. Our basic goal is to continue with the policy of stabilization so as to definitely detach ourselves from the unstable Yugoslav spaces. Perhaps we have already done so. In any case, cooperation with that area is practically impossible, except for cooperation with Croatia, and there won't be any until the situation improves. Economic stabilization is based on an adequate fiscal policy with a small budget deficit over the next two years, and restrictive measures in the field of public consumption. At the same time, we stimulate exports to European and other markets in order to enable the further development of the Slovenian economy, which was dimensioned for an area of 23 million inhabitants in the former Yugoslavia, and to overcome problems arising from a reduced market.

It should not be forgotten that Slovenia has much smaller debts than Yugoslavia and we will take great care now to prevent indebtedness to the extent that existed in the former state. We shall only support a highly limited indebtedness. This means that we shall only incur debts to around 30% of the annual social product, i.e., three billion dollars, if we count on a gross national product of 10 billion dollars.

During the time of the former government, non-budgetary expenditures totalled 46.5 million DM, which the Slovenian Ministry of Defence spent on the purchase of weapons abroad. How did this happen, and how do you plan to prevent such cases in the future?

I would not like to comment on whether such transactions in connection with the purchase of weapons occurred or not, as this is not the affair of the Finance Minister. What is important and what interests me is the fact that, with the new Law on the Government, the Finance Ministry has acquired the right and the duty to unify all accounting services and to control the work of all ministries through the Ministry of Finance. We do not wish to influence the policy of individual ministries, but we shall have to take greater care so as to ensure that the money is used in a rational manner. Officials of the Court will have an insight into the complete work of all institutions and specific measures will be undertaken if the ministries do not spend money in a rational way.

In spite of this, Defence Minister Janez Jansa recently publicly complained on television that, allegedly, it was precisely you who, among other things, protested that Slovenian soldiers were given "Ray-ban" glasses as part of their equipment, and that you said that you would not tolerate such an extravagance, even though Jansa claims that resources for covering his ministry's financial needs are insufficient in every respect. It seems that now, as Finance Minister, you have found yourself in a similar position, as regards the army's appetites, as when you were vice-governor of the National Bank of Yugoslavia, and had to fight the appetites of the Yugoslav People's Army (JNA)?

I do not wish to comment Janez Jansa's statement even though he disclosed some details from our private talks, details which do concern the general public. What is important, is that the Defence Ministry is also financed from the budget and that it cannot claim a special status. I believe that we were able to draw a good lesson from the Yugoslav experience with regard to this, so that we shall not repeat the same mistakes. Parliament will decide on the amount of resources to be allocated for defence, and then we shall have to make sure that these funds are spent rationally. If we take into account that some investments require greater initial funds, for example in the field of defence, or areas of national interest, it becomes evident that, in future, priority will be given to the economy. It is true that there will be sufficient financial resources, but in the coming period some ministries will no longer enjoy the same status as during the last two years. Resources for defence amount to about 1.7% of the social product which, in comparison with the former army which spent 3.5%-5% of the social product, is much less...

In Slovenia a popular remark aimed at discrediting politicians who were employed in institutions of the former Yugoslavia, is to claim that they miss Yugoslavia. You spent a lot of time in Belgrade, do you plan to visit it soon?

If diplomatic and all other relations are normalized in the future, I see no reason why I should not visit Belgrade and Serbia again. It is clear that for now, in the present political situation, there is no possibility for this. As regards contacts which still exist, even those between central banks, they should certainly be developed further. Serbia is a potential market of about nine million people and, regardless of the borders it will find itself in after these wars, Slovenia will have an interest, as will all others, to trade both with Serbia and the other states in the region. In any case, we already have many advantages there. Even before the introduction of the embargo, we could not arrive at suitable solutions with the current Serbian and Yugoslav governments, in order to embark on the path of better economic relations. However, if sometime in the future, moderate and rational politicians prevail, things will be easier. But, as long as Serbia is at war, and while it wages war in the way it does at present, it is naturally not possible to realize this.