The European Commission is being pushed to take a tougher line with Slovenia amid mounting concerns that infighting is hampering the country’s ability to overhaul its troubled banking sector and avoid becoming the next rescue target in the eurozone crisis.
According to two senior eurozone officials, concerns have focused on “non-cooperation” between Slovenia’s finance ministry and central bank, which supervises the financial sector. One of the officials said the central bank was being “obstructionist” towards the new government’s clean-up efforts.
The central bank’s role could prove particularly problematic because the three largest Slovenian banks – the most in need of a rescue – are state-owned, raising questions about the supervisor’s ability to impartially evaluate their needs. “The country has a governance problem of major proportions,” the official added.