...Credit Fundamentals: Slovenia's `A+' rating is supported by high governance and human development indicators and a credible policy framework anchored by EU and eurozone membership. These strengths are balanced against high, although declining, public debt relative to `A' rated peers and the economy's small size. New Government; Broad Policy Continuity: The new centre-right minority coalition, led by Janez Jansa in his fourth term as prime minister, seeks productivity and competitiveness gains through tax relief and regulatory simplification, alongside a slightly looser fiscal stance. Its more confrontational approach towards the EU on migration and foreign policy is unlikely to affect EU fund disbursements. Moderately Wider Deficits: Fitch Ratings expects the general government deficit to remain just below 3% of GDP in 2026-2028, reflecting higher investment, public wage and defence spending. Stronger growth, higher inflation and a drawdown of government deposits support the fiscal and...
