The challenge to Slovenia's privatisation programme.
Slovenia's privatisation programme faces a new challenge with the emergence of an open rift between the ruling Modern Centre Party (SMC) and one of its coalition partners, the Social Democrats (SD), over the behaviour of Defence Minister Janki Veber. The first casualty will be Telekom Slovenije, whose sale will inevitably be postponed. The wider privatisation programme is also at risk from persistent public hostility to the sale of strategic assets.
The latest rift will weaken government stability and could cause it to collapse.
The open display of dissent over privatisation will both deter strategic investors and complicate further sales of state-owned assets.
Failure to deliver on the privatisation programme poses a risk to Slovenia's economic stability and long-term growth prospects.
