Transcript Gospodarska zbornica Slovenije –Povezujemo podjetja

London, 30-31 March 2006
Policy learning and experimentation in EU economic governance:
Laboratory federalism in practice?
SOCIAL PARTNERSHIP IN SLOVENIA
– HOW USEFUL FOR EMU?
Tatjana Pajnkihar, advisor
Chamber of Commerce and Industry Slovenia
SOCIAL DIALOGUE IN SLOVENIA
 a system of social partnership introduced in 1994 to promote
consensus between employers’ and employees’ organisations
 Consensus also promoted by Slovenian constitution
TRIPATITE




Social and Economic council
Social agreement : 1996, 1997, 2003-2005, 2006-in progres)
Wage policy agreement (private & public sector)
other tripartite bodies
BIPARTITE
Collective agreements
 on national level
 on activities’ level
 at companies’ level
The social partnerships does not comprise only basic
industrial relations.
Social and Economic Council is also acquainted with
specific macro-economic issues, such as:





Monetary policy – i.e. adopting of the Euro
Fiscal policy – i.e. tax reform
Income policy, i.e. wage adjustements, minimum wage
Public expenditures
Etc.
ADOPTING THE EURO IN SLOVENIA
• June 2004: ERM2 regime; central parity 239.64 SIT per EUR
• January 2005: Joint Slovenian scenario of adopting the euro
• June 2004 – till this moment: exchange rate SIT/EUR stable,
close to central parity
• Since October 2005: meeting the convergence criteria
• January 2007: final introducing of the Euro - “Big bang” scenario
SLOVENIA AND MAASTRICHT CRITERIA
December 2005
Inflation (12-month average)
Long term interest rate
Public finance deficit (% GDP)
Public debt (% GDP)
Source: Bank of Slovenia, January 2006
CRITERIA
SLOVENIA
2,5%
2,5%
5,37%
3,81%
< 3%
2,1%
< 60%
29,8%
WHY REFORMS ?
• Stable economic growth
• The states with implemented reforms had higher economic progress
• Very slow restructuring – high % of state in the economy
• Dramatic fall of competitiveness: 35  52/60 (IMD 2005)
• Ageing population – the possible collapse of the pension system
• High youth unemployment
• Problems in the health system
• Etc.
SLOVENIA- ECONOMIC GROWTH
REAL GDP GROWTH
7
6
1995 – 2006, in %
1995 - 2000:constant proces 1995
2001 - 2006: constant prices 2000
79% of
EU-25
5
4
3
2
4,1
5,6
4,8
3,6
3,6
4,1
2,7
1
3,5
4,2
3,9
4,0
2,7
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: SORS, Estimates and forecasts SKEP, october 2005
SKEP GZS
COMPETITIVENESS
In %
20
COMPARED TO THE EU NEW MEMBER STATES
10
0
-10
PERCEPTIONS IN GENERAL
-20
-30
-40
COMPARED TO THE EU 15
-50
-60
1992
1993
1994
1995
1996
1997
1998
2000
1999
2001
2002
2003
2005
SKEP GZS
Source: GZS - Survey SKEP "PERCEPTIONS ON COMPETITIVENESS"
ADVANTAGES – POSITIVE
MOST NEGATIVE
•
•
•
•
•
•
•
•
Access to the buying markets
Access to capital
Price of capital
Political stability
2004
Taxation
Administration and regulations
Additional labour costs
Industrial policy
SET OF ECONOMIC AND SOCIAL REFORMS
• Slovenian Government put forward the proposition of the framework of
INTEGRAL ECONOMIC AND SOCIAL REFORMS in October 2005
• Slovenian Government adopted the reforms on 3.11.2005
• A public debate followed
unions (employees
representatives)
on the other hand
expressed HIGH
DISAPPROVAL
Economic sector AGREES
with the neccessity of the reforms
– taking into consideration certain shortages
KEY AREAS
OF THE
REFORMS
TAX REFORM
LABOUR
MARKET
REFORM
WAGE
POLICY
REFORM
PENSION &
HEALTH
SYSTEM
REFORM
SOCIAL
TRANSFERS
SYSTEM
REFORM
THE NEW SOCIAL AGREEMENT 2006 - 2009
•dynamic
economic growth,
•enhanced
competitiveness
•new
investments,
• new and better
employment
•knowledge,
•entrepreneurshi
p and
• innovation
•low inflation,
•balanced and
comparable
interest rates,
•lowering public
finance deficit
“ECONOMIC GROWTH AND
EMPLOYMENT”
•social security,
•enhanced quality
of life;
•
Better
business
environment
• remove
obstacles in tax
and labour
regulation
1. TAX REFORM
i.
flat tax rate (around 20%?.....17%)
i.
personal income tax  unions NO!
ii. VAT unions NO!
employers SPECIAL CONSIDERATION OF CERTAIN ACTIVITIES!
ii. Abolishment of payroll tax  unions & employers agree!
iii. simplifying the tax procedure  unions & employers agree!
iv. change of corporate tax (lower rate without any tax deductions)
v. real estate tax (real estate register, was to be adopted by 2005
already, then prolonged to 2007)
2. MORE FLEXIBLE LABOUR MARKET
i.
more flexible employment contracts - part time, fixed term
employment
ii. Promote employment agencies
iii. scolarship programmes
iv. Abolishment of the bonus on the years of employment
v. active employment policy – more regional emphasis, job rotation
programme
3. WAGE POLICY
Government:
Employers and unions:
•Tripartite dialogue for both public
and private sector
•bipartite dialogue for private sector
•Wage agreement, enforced by law
•Collective agreements-where wage
policy should be set
Common goals:
• real gross wage growth  1pp behind productivity growth
• “wage moderation”, “employment friendly wages”
• minimum wage - an integral part of the wage system  its escalation
clause in line with low inflation in Slovenia
4. SOCIAL TRANFERS SYSTEM
more transparent and fair social transfers system
i.
one point of control mechanism and unified way of adjustment
ii.
Unemployment bonuses – more restrictive?
iii. upper limit of sick leave bonus – upper limit of contributions paid?
iv. …
THE QUESTION OF FLEXICURITY?
5. HEALTH & PENSION SYSTEM
GOVERNMENT
i.
diminishing sick leave only
after first 30 days
ii.
Enlarging the basis for
employers social contributions
iii.
Increasing the retirement age
iv.
Combinig employment and
retirement
v.
2nd & 3rd pillar separated
completely
EMPLOYERS
i.
The basis for social contributions
must not be enlarged
ii.
Lowering of the sick leave bonus
from the 1st day on
iii.
Exuse the pay of contributions for
employers who employ elderly and
invalid persons
iv.
Lower the dependence of people on
financial help of the state by creating
new workplaces
UNIONS
i.
Against any diminishing of sick leave bonus
ii.
Against Increasing the retirement age
6. other…
i.
cheaper and more effective state
ii. further privatisation
iii. rationalistation of public administration
iv. energetics
v.
promoting technological development and investments
vi. ….
Thank you for your attention!
SOCIAL AND ECONOMIC COUNCIL
 Established in 1994
 Consists of three groups of representatives:
• Employers (among them CCI)
• Trade unions (6 confederations on national level)
• Government
 Regular sittings, rotating presidency
The opinion of council is respected in parliament when adopting
a certain act!