By: Sara Kovač (Nova24tv.si)
The Parliamentary Finance Committee discussed and unanimously supported the proposal for this year’s state budget revision, which the government prepared due to the consequences of the recent floods. Through this revision, the government allocates 520 million euros for assistance to the affected and for addressing the aftermath of the natural disaster. Additionally, it is evident that the government also plans to initiate the buyout of small shareholders in electricity distribution companies later this year.
The government of Robert Golob is ready to allocate up to 185 million euros for projects (such as Kalantia Limited by Igor Lah, with various financial funds being significant small shareholders as well). The total amount could further increase in the coming year. The question, however, is whether this can still be a budgetary priority amidst the billions required for flood recovery. Golob’s privatisation of electricity distribution is continuing full steam ahead. In this context, Uroš Urbanija remarked that working Saturdays are apparently just a show of solidarity with the electricity oligarchs.
During the introductory presentation of the “very straightforward budget revision”, State Secretary Saša Jazbec did not mention anything about electricity distribution. The proposed budget revision, through which the government reallocates funds for flood recovery, anticipates that the government will take 300 million euros from the so-called Balance B. This refers to receivables and investments or funds intended for potential capital injections into energy companies – Slovenian Sovereign Holding (SDH), which have not been used.
In the proposal, the government stated that given that the “energy crisis is not worsening and that HSE has already returned 100 million euros of additional capital to the state in 2023 and has announced the return of an additional 242 million euros, the planned funds of 300 million euros will not be necessary and will be used to address the consequences of the floods in the Republic of Slovenia.”
Furthermore, the proposal states that with this action, “SDH will be able to conclude procedures related to EDP up to the amount of 185,130,000 euros in this year, while the remaining amount can be deferred to 2024”. EDP is an acronym for electrical distribution companies such as Elektro Ljubljana, Elektro Maribor, Elektro Celje, Elektro Primorska, and Elektro Gorenjska.
This concerns the buyout of small shareholders
Two weeks ago, Finance Minister Klemen Boštjančič stated that this is a project for the buyout of small shareholders in five electrical distribution companies. The sentence in the budget rebalancing proposal reveals that the government will pay small shareholders at least three-quarters of the book value for each share. It is known that such payments for all five companies would amount to a total of 185 million euros. The government is offering small shareholders twice as much as the amount that the electrical distribution companies themselves offered them years ago in their share buyback program, reports Andreja Lončar from N1. Back then, the price offered to small shareholders was too low, and they did not sell their shares. Since the rebalancing proposal indicates that some projects could be implemented next year, there is a possibility that the final price per share could be even higher, she adds.
The opposition, however, believes that the budget rebalance is not ambitious enough. They supported it, as well as the emergency intervention law, because they believe that a swift response is necessary due to the flood relief efforts. Suzana Lep Šimenko and Rado Gladek argued that the government should cut spending in state institutions first before burdening citizens, entrepreneurs, and bankers with additional taxes. Nevertheless, the government has already announced a solidarity contribution, which, according to calculations by Finance newspaper, will result in individuals contributing around 130 million euros to the reconstruction fund over two years, while companies and entrepreneurs will contribute around 180 million euros.
Two weeks ago, Finance Minister Klemen Boštjančič stated that this is a project for the buyout of small shareholders in five electrical distribution companies. The sentence in the budget rebalancing proposal reveals that the government will pay small shareholders at least three-quarters of the book value for each share. It is known that such payments for all five companies would amount to a total of 185 million euros. The government is offering small shareholders twice as much as the amount that the electrical distribution companies themselves offered them years ago in their share buyback programme, reports Andreja Lončar from N1. Back then, the price offered to small shareholders was too low, and they did not sell their shares. Since the rebalancing proposal indicates that some projects could be implemented next year, there is a possibility that the final price per share could be even higher, she adds.
The opposition, however, believes that the budget rebalancing is not ambitious enough, but they supported it as well as the intervention law, as they believe that swift action is necessary due to the flood assistance. Suzana Lep Šimenko and Rado Gladek suggested that cuts should be made in government bodies first before imposing additional taxes on citizens, entrepreneurs, and bankers. However, the government has already announced a solidarity contribution, through which, according to Finance newspaper’s calculations, individuals will contribute around 130 million euros to the reconstruction fund over two years, while companies and entrepreneurs will contribute around 180 million euros.