Ljubljana: Slovenian Prime Minister Alenka Bratusek, who was ousted as chairman of the Positive Slovenia party a week ago, said she will resign on 5 May and called for elections to be held as soon as possible.

Bratusek, who met with her coalition partners, said a snap vote would best end the political crisis and urged lawmakers in Ljubljana to allow her to stay in power until a ballot takes place. Her comments at a news conference were televised live on public broadcaster RTV Slovenija. Bratusek said she will officially inform parliamentary speaker Janko Veber and President Borut Pahor of her plans in two days.

“I call upon all the lawmakers to give up their right to propose a new prime minister-designate," said Bratusek, who took over the reins of government in March 2013. The first possible date of early elections could be 22 June, according to our calculations.

Bratusek, the third premier since 2011, lost the confidence of her political party and her coalition for pursuing policies that were considered too austere. She helped Slovenia avoid an international bailout by recapitalizing the bank industry with €3.2 billion ($4.4 billion), moving toxic loans to a state agency, starting state-asset sales and pledging to stem the budget deficit.

The yield on Slovenia’s benchmark euro-denominated bonds maturing in 2024 declined to the lowest level in almost a month on Friday after Fitch Ratings raised its outlook for Slovenia to stable from negative as the economy recovers faster than previously thought. The yield plunged 21 basis points from the previous session to 3.466%, the lowest level since 7 April, according to data compiled by Bloomberg.

Fitch action

Fitch left the euro member’s BBB+ rating unchanged, the third-lowest investment grade and on par with Ireland, Spain and Latvia. Standard and Poor’s rates Slovenia at A-, while Moody’s Investors Service has it at Ba1, its highest junk grade. They both have stable outlooks.

“We fulfilled our promise to bring Slovenia safely to elections and the country is still a sovereign one," Bratusek said on Saturday. “We have done it without outside assistance and macroeconomic indicators and our credit ratings have improved."

According to Slovenia’s legislation, the country’s president can dissolve the parliament and call an early vote in a 30-day period if there are no proposals for a new prime minister. After that, elections must be held in 40 days.

Budget shortfall

Slovenia’s bank rescue and the start of selling state-owned enterprises, including Telekom Slovenije d.d., have led to reductions in borrowing costs to record lows.

In the end, though, Bratusek was unable to fend off attempts by coalition partners and party members to water down pledges on selling state assets as she strove to cut the budget shortfall that last year surged to almost 15% of the nation’s output. The gap is set to shrink to 4.1% by the end of this year, according to the central bank.

The turmoil arose when she lost the chairmanship of Positive Slovenia to party founder Zoran Jankovic on 26 April. She repeatedly said she would not stay on as head of government if she lost the party’s confidence.

Jankovic, the capital’s mayor who formed Positive Slovenia two months before a snap vote in late 2011, left the party’s top spot to Bratusek after he was accused by the country’s anti- graft agency of failing to declare his private assets along with the former Prime Minister Janez Jansa.

Prosecutors have yet to act on accusations against Jankovic. Bloomberg

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