POLITICAL RISK - Downward Revision

We have revised our short-term political risk rating for Slovenia, due to considerable uncertainty over the composition of the new government following elections on September 21. Latest opinion polls show the main opposition Social Democrat (SD) party inching ahead of the incumbent SDS government. More importantly, no party is likely to win an outright majority, meaning coalition forming will play a crucial role in forming a new cabinet. The increased leverage this provides small and specialist parties could weigh on the reform agenda going forward. Furthermore, an expected economic downturn is likely to feed into greater social instability, which will

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