Under-pressure Slovenia adopts fiscal 'golden rule'

In line with a principle adopted in most European Union countries in response to the eurozone crisis, the general government budget will have to be balanced, with exceptions possible only under "extraordinary circumstances".

Prime Minister Alenka Bratusek's centre-left government wanted the much-delayed "golden rule" to apply from 2017 but under pressure from the opposition it will enter into force from 2015.

This was to show that the government it is ready to "act for the people's and the state's benefit," Bratusek told lawmakers. The bill was approved by 78 votes against eight in the 90-seat parliament.

Slovenia, once a model EU and eurozone newcomer, has been struggling to jumpstart an economy in recession since 2011. There is widespread concern that it is at risk of becoming the sixth eurozone country to need outside help after Greece, Ireland, Portugal, Spain and Cyprus.

With Slovenia's banks sitting on a mountain of bad debts, Moody's cut its rating on Slovenian government bonds to "junk" in late April.

Earlier this month, Bratusek presented Brussels with an action plan of privatisations, tax rises and spending cuts aimed at improving the former Yugoslav republic's public finances.