Alenka Bratusek, Slovenia’s new Prime Minister, has stated that she is considering raising the VAT rate. Slovenia is currently struggling with the economic effects of bad debts in the banking sector. Bratusek, who was formerly head of the Budget Directorate at Slovenia’s Finance Ministry, told parliament that an increase in the VAT rate would have the least adverse effect on the economy of the options available. Bratusek also intends to continue with bank restructuring that was begun by the previous Government.
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