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Slovenian Prime Minister Borut Pahor’s centre-left coalition has collapsed following a vote of no-confidence for accusations of corruption and economic incompetence, reports the BBC.51 out of a total 88 members of parliament voted against Pahor’s government on Tuesday. Pahor will stay in government as a caretaker government until a new government is found..
While Slovenia is a relatively small country, the repercussions may be larger. Lawmakers have 30 days to propose a new leader that can hold a parliamentary majority. If that doesn’t work, elections must be held.
The biggest problem, however, is that Slovenia is still yet to ratify the EFSF reform and is scheduled to vote on the September 27.
Pahor is calling for politicians from all parties to put aside their party allegiances and vote to ratify the EFSF reform. Unfortunately, there is a danger the vote will become politicized. Janez Jansa, a former premier and the leader of Slovenia’s Democratic Party, is widely expected to be the next Prime Minister, and he is opposed to another Greek bailout.
Analysts remain cautiously optimistic about the vote.
“I expect parliament to endorse the bill but an unexpected rejection could happen as parties prepare their pre-election tactics,” said Borut Hocevar, an editor of daily Zurnal24, according to the BBC.
Zachary Rothstein, an analyst at Control Risks, seemed to agree in an interview with CNBC.com:
“I think that because his party is likely to form the next government and he is likely to be the next prime minister, he will face enormous pressure to approve the mechanism and I think he wouldn’t want to jeopardize the country’s reputation at this stage.”
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