What will the Slovenes lose if the intervention law falls

Alenka Zupančič, a philosopher, has criticized the rise of authoritarian right-wing politics, linking it directly to capital interests. She argues that the far-right party activates when particularly drastic, brutal, and shameless measures are needed, a pattern historically observed during the rise of fascism and Nazism. According to her, the right-wing coalition has initiated what is called the “development law,” which she describes as a “development” in a specific direction that most people will perceive as very different from their desired path. This law represents extremely serious socio-economic upheavals that will not remain abstract but will concretely affect relationships, social infrastructure, and personal finances. She warns that the three advisory referendums organized by the coalition, once it became clear the law would go to a referendum, are precisely examples of diverting attention away from real problems. These actions involve provocation and stirring up emotions, with the aim of preventing people from discussing who benefits at their expense. The proposed law, known as the Law on Intervention Measures for the Development of Slovenia (ZIURS), was passed by the National Council on May 11, 2026. It introduces extensive changes across multiple areas including taxes, social contributions, business, healthcare, pension systems, rent, and labor relations. The law modifies ten different laws and includes several temporary measures intended to reduce certain costs for businesses and citizens while improving working conditions and development opportunities. One key measure is the so-called “development cap,” setting a base rate of €7,500 for calculating social security contributions. This is aimed primarily at relieving the cost of employment for highly paid workers, with proponents claiming it could improve retention and attraction of high-skilled labor. Business and entrepreneurial organizations have welcomed this measure, though they hope it will eventually apply to more citizens. Significant changes are also planned for self-employed individuals and small businesses. The law alters rules for determining operating costs for independent entrepreneurs and regulates their tax treatment. For those meeting certain criteria, there is the possibility of calculating taxable income based on normalized expenses, with special provisions for new businesses. Additionally, the law offers more favorable tax treatment for rental income from property, especially for young individuals and families. According to data from the Association of Municipalities of Slovenia, the tax rate on such income decreases from 25% to 5%, while other cases see a reduction to 15%. For consumers, a temporary measure reduces the value-added tax (VAT) on energy products to 9.5%, aiming to alleviate the impact of rising prices on households and the economy. The law also addresses healthcare, modifying rules regarding agreements for work with healthcare professionals and cooperation between public and private healthcare providers. Changes include adjustments to health insurance and long-term care contributions, including the abolition of contributions for long-term care for those engaged in informal occupations and retirees. The law also postpones the application of a new hospitality law until 2027 and introduces restrictions on regression claims by the Slovenian Health Insurance Fund against employers in workplace injury cases, except in cases of gross negligence. While the law provides benefits across many sectors, its rejection by the left opposition could be detrimental to Slovenia. A successful state, according to the argument, is one that uses reasonable taxes to provide good public services while allowing room for work, creation, employment, and investment. This is the essence of the intervention law. The referendum on October 11, 2026, will decide its fate.