The fate of the referendum on the intervention law will be known next week

The decision on whether a constitutional referendum regarding Slovenia’s intervention law will proceed is expected to be known next week, according to officials at the Constitutional Court. The law, which has sparked intense debate among labor unions, opposition parties, and business groups, remains unimplemented despite being passed by the National Assembly. The government and its majority in parliament claim that a referendum on the law is not legally permissible, while critics argue this represents an abuse of power. The court's ruling will have significant implications for the upcoming budget rebalance, as it is unclear whether funds must be allocated for implementing the law or left to public decision through a future referendum. The Constitutional Court has confirmed that it has not received any urgent requests from participants in the process or other entities, and the case is currently under review. The outcome of this legal assessment could determine whether the law moves forward or faces a potential vote by the public later this year. If a referendum is allowed, the collection of signatures would begin in September, with the actual vote likely taking place by the end of the year. This timing is designed to ensure fairness, as summer months typically see reduced access to administrative offices and voters. The intervention law aims to lower VAT on basic food items and certain energy products, introduce systematic solutions for small businesses and so-called “normirancers,” and reform tax policies, social contributions, and healthcare and pension systems. One provision, which exempts retirees from paying long-term care contributions, has drawn particular controversy. Social media posts indicate frustration over the rule, with some suggesting even retirees without income might still be required to pay these fees. Labor unions and opposition parties have criticized the law, arguing it threatens public finances and introduces unfair solutions. They have gathered over 47,000 signatures in support of a future legislative referendum on the law. Meanwhile, the law’s proponents, primarily a group of MPs around the NSi party, Democrats, and Resilience, maintain it is essential for Slovenia’s development. Some members of the SDS parliamentary group have also supported the law. The law’s implementation is currently stalled due to the ongoing legal challenge before the Constitutional Court. The court is assessing the law’s constitutionality, particularly because it includes tax measures that the Constitution does not allow to be subject to a referendum. Labor unions have expressed concern over the lack of transparency surrounding the court’s deliberations. Jakob Počivavšek, representing the unions, stated they have been informed of the government’s position and the stance of the National Assembly, but no further updates have been provided. The government, along with its coalition partners in the National Assembly, has taken a firm stance against holding a referendum on the law, asserting that it falls into categories prohibited by the Constitution, such as laws related to taxes, tariffs, or mandatory obligations. However, the possibility of a referendum remains open pending the Constitutional Court’s final decision. If the court rules in favor of allowing a referendum, President of Resilience Zoran Stevanović has indicated he would assist in collecting signatures for the initiative, expressing confidence in its potential success. The situation highlights the deep divisions within Slovenian society over economic policy and the role of direct democracy in shaping legislation. The court’s decision is anticipated to provide clarity on the law’s fate and influence the broader political landscape. Until then, uncertainty persists over whether the law will take effect or face a public vote later this year.