http://www.wsws.org/articles/2005/dec2005/slov-d15_prn.shtml
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Slovenia: Protests against government reforms
By Markus Salzmann
15 December 2005
On November 26, protesters took to the streets of the Slovenian
capital of Ljubljana against government plans for massive cuts in the
country's social security system. More than 40,000 people
participated—the largest demonstration since the republic's
independence from the former Yugoslavia.
The protest's organisers had anticipated far fewer participants. In
spite of freezing temperatures and persistent snowfalls, thousands of
workers, pensioners, youth and students from all over the country
assembled in the capital. Some buses with protesters were delayed due
to the weather.
Trade unions, pensioner organisations and student groups had called
the demonstration under the slogan, "For the maintenance of the
welfare state." The protest was aimed against the planned economic
reforms of the right-wing government of Prime Minister Janez Jansa.
Since his election victory in October of last year, Jansa has headed a
conservative coalition of the Slovenian Democratic Party (SDS), the
People's Party (SLS) and the New Slovenia Party (NSI). However, the
coalition does not enjoy a safe majority in parliament and is forced
to rely on support from the pensioner party, DeSus, which was a member
of the previous government.
Given that there are divisions within DeSus over the reforms, the
government cannot rely on always being able to pass legislation in
parliament. When the government could not muster a majority in the
past, some parliament deputies on the fringes of the government worked
with the Slovenian National Party (SNS) to push bills through. The SNS
represents openly nationalistic and fascistic positions. In the last
elections, held in October 2004, it was able to gain more than 6
percent of the vote and thereby entered parliament.
These elections saw the centre-left government under liberal democrat
Anton Rop punished for its neo-liberal policies, policies that were
entirely designed to fulfil the requirements for entry into the
European Union (EU). Under Rop's rule, the social security system,
considerable by east European standards, was rigorously cut back and
public utilities were privatised.
After entering office, Jansa set about pursuing this attack against
the Slovenian population much more aggressively. His reform package
contained some 70 measures that are due to be implemented next year
and are aimed at improving the country's "business climate." The
centrepiece of the reforms is the introduction of a flat income tax
rate of 20 percent and the dismantling of social services.
The measures will also make it far easier to dismiss workers.
Allowances for meals and travel will be eliminated. Sick leave pay
will be reduced to 70 percent of wages, instead of the 100 percent
that workers currently receive. The government also wants to make free
tertiary education a thing of the past. In addition to higher
education fees, students will lose various concessions and
entitlements. Health care is also under attack, with both the
privatisation of state hospitals and clinics and further cuts to the
public health system on the agenda.
The introduction of a flat tax will have a detrimental effect
primarily on low-income workers, while further lining the pockets of a
small wealthy layer. Slovenian trade unions are warning that this
measure will lead to a drastic impoverishment of broad layers of the
population.
Dusan Semolic, head of the Slovenian trade union organisation ZSSS,
says that living standards for 70 percent of the population will
decline significantly due to the reforms. Estimates show that
approximately 250,000 pensioners living on a monthly income of 420
euros or less will need an additional 200 euros to maintain their
current standard of living.
In recent years, government price controls on electricity, post,
telecommunications and essential groceries were eliminated, after
which costs shot through the roof. At the same time, wages and
salaries stagnated.
Alongside cuts to social services and reforms of taxation, the
government also aims to completely privatise the remaining public
utilities. About half of the country's gross domestic product is
produced by public utilities and corporations. The metal industry is
one of the main ones still largely controlled by the state.
It was government control over a large portion of industry that led to
a relatively high standard of living and a comparatively low level of
unemployment. However, the country's ruling elite views this as an
unacceptable restriction on its personal enrichment. Joze Damijan, the
man designated by the government to head the newly created reform
ministry, characterised every form of control over the economy as
"unhealthy" and advocated privatising scores of enterprises next year.
The result would be mass layoffs and huge salary cuts.
The conservative government's reform programme has been welcomed by
political and economic circles in western Europe. One year after
Slovenia entered the European Union, Brussels is increasing political
and economic pressure on the Balkan country. Together with Estonia and
Lithuania, Slovenia is due to introduce the euro in 2007.
However, problems already surfaced after 2004 when the country's
currency, the tolar, was bound to the euro and entered into the
European exchange mechanism. The real value of the tolar in comparison
to the euro adversely affected foreign trade and led to a significant
increase in the trade deficit.
The Convergence Report issued by the European Central Bank in autumn
of last year concluded that Slovenia was not yet ripe for the euro.
Brussels demanded further cuts in expenditures to balance the budget,
a "moderate" wage policy and structural changes (that is, the
introduction of private investment) to the health and pension systems.
It further demanded a radical liberalisation and privatisation of
industry as well as changes to agricultural subsidies.
Significant pressure also came from other new EU member states. In the
Baltic states, the Czech Republic and Slovakia, similar reforms have
been implemented in recent years in order to attract Western capital.
Many companies have passed Slovenia by and invested in these
countries, which offered lower taxes and cheaper labour costs.
The liberal democrats and social democrats, which comprise the largest
portion of the opposition in parliament, have at most only tactical
differences with the government. While they officially reject the
introduction of a flat tax, they nevertheless welcome the radical
cost-cutting measures.
With the exception of a few short periods, the liberal democrats, a
party that arose out of the youth organisation of the Yugoslav
Communist Party, have ruled the country since 1992. Their initial
programme of national-protectionism came under increasing pressure
from large European corporations. This pressure reached its high point
when Rop took over the party and government leadership and led a
drastic turn to the right, paving the way for the election victory of
the right-wing forces under Jansa.
Even the trade unions have not opposed the attacks. Many unions stand
behind the right-wing government and kept their distance from the
recent demonstration. Even those unions that called the protests
fundamentally agree with the aims of the government. Many union
representatives call on the government to engage in a dialog with them
and work out a way to implement the reforms together. These elements
see the danger that a precipitous process of reforms could trigger a
movement from below that could develop out of the unions' control.
Since independence, close cooperation has existed between politicians,
business and the unions, which represent nearly half of all workers in
the country. The unions played a decisive role during the
privatisation of enterprises at the beginning of the 1990s. They
suppressed all forms of opposition by workers to the selling off of
the Slovenian economy. The union organisation ZSSS characterised
itself as an "active partner in the privatisation process." It is
telling that nearly all unions in Slovenia completely supported the
country's entry into the EU, in spite of its social consequences.
As in Slovenia, the attack on living standards in other east European
states is leading to protests. On the same weekend that people took to
the streets in Ljubljana, 25,000 people assembled in the Czech
Republic's capital of Prague to protest against legislation aimed at
making it easier for companies to shed workers.
Serbian News Network - SNN
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http://www.antic.org/
