Slovenia says to sell 15 firms, raise VAT to avert bailout

Slovenia pledged on Thursday to sell 15 state firms including its second largest bank, biggest telecoms operator and national airline under a crisis package to avert an international bailout.

Prime Minister Alenka Bratusek said value added tax would rise from 20 percent to 22 percent from July but that the government was still in talks with unions on planned cuts to the public sector wage bill.

She said the budget deficit would soar to 7.8 percent of national output this year but the government aimed to bring it down to 3.3 percent in 2014.

Finance Minister Uros Cufer said the package would result in total savings of around 1 billion euros in spending cuts and revenues.