Slovenia's debt brake calms markets

The heads of all Slovenian parliamentary parties reached a general consensus on amending the constitution to include a debt brake, however the upper limit for government debt has yet to be agreed. The left-liberal daily Delo sees the debt cap as a step in the right direction: "After a long delay this is the first weak signal to the jittery financial markets that efforts are being made in Slovenia to bring public finances under control. The politicians appeared to be surprisingly united on this yesterday. ... Critics see the so-called 'golden rule' as a measure that won't create economic growth or new jobs in the short term. ... Such critics even predict the contrary, which is probably why the debt brake is just a necessary evil in the national and European financial crisis. But without the rule we would soon end up like the PIIGS states: in a quagmire of debt and expensive loans."

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