Slovenia sets Sept. 1 for signature collection for referendum on economic stimulus law

Slovenia's National Assembly has designated September 1 as the commencement date for collecting signatures to support a referendum on the "Intervention Law for the Development of Slovenia." Initiators will have until October 5 to gather the required 40,000 valid signatures. If successful, the parliament will be mandated to hold the referendum. The law, initially passed by the National Assembly on May 11 before the formation of the new government, was drafted by lawmakers from NSi, SLS, and Fokus, with support from SDS. It aims to address the looming energy crisis by proposing a reduced Value Added Tax (VAT) on essential goods and some energy sources. Additionally, it includes systemic solutions for small businesses, such as a cap on social contributions, and reforms in healthcare and pensions. While the business sector has responded positively to the law's provisions, trade unions, along with civil society and opposition parties, have voiced strong criticism. They argue that the law employs "omnibus technique", bundling unrelated matters, and have initiated efforts to hold a subsequent legislative referendum, having already collected over 47,000 signatures. Earlier, in late May, the National Assembly had ruled the referendum inadmissible, citing constitutional provisions that prohibit referendums on laws concerning taxes and other mandatory duties, which form a significant part of the intervention law. However, the trade unions appealed to the Constitutional Court in June. In a decision published on Monday, the Constitutional Court overturned the parliamentary majority's ruling. The court determined that if a law contains provisions not related to areas where referendums are prohibited, and these provisions are not minimal but address significant issues, the law as a whole is not subject to the constitutional ban on referendums. Consequently, the National Assembly has now set the date for signature collection.

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If the initiators of the referendum on the intervention law succeed in collecting 40,000 signatures within 35 days, the National Assembly will have to call it.