Inconclusive Slovenian elections will mean instability
Subject Aftermath of June 3 elections. Significance The right-wing Slovenian Democratic Party (SDS) has won the parliamentary elections, eclipsing its nearest rival, the List of Marjan Sarec (LMS). However, with just 25 seats in Slovenia’s 90-member parliament, the SDS falls far short of a majority. If it cannot form a government, an LMS-led coalition is possible. Impacts An SDS-led rejectionist government would create uncertainty for investors who must be prepared for a significant shift in economic policy. It would probably ramp up the border dispute with Croatia, starting with legal action on Zagreb’s non-compliance with an arbitration ruling. The emergence of yet another Eurosceptic government in a rebellious corner of Europe bodes ill for EU cohesion. An SDS-led government would further rearrange party politics, involving the probable collapse of the inchoate and unstructured LMS.