Slovenia, which narrowly avoided an international bailout last year, has appointed spa resort manager Zdravko Pocivalsek as its economy minister after his predecessor resigned over allegations of fraud in October.

Mr Pocivalsek (57) who has never been a member of a political party or run for office, was proposed by prime minister Miro Cerar's centre-left SMC party.

For the past 15 years he has been chief executive of a state-owned spa resort Terme Olimia.

Slovenia's previous economy minister, Jozef Petrovic, quit following media reports that he had worked for a company that rigged prices on state contracts. He has denied any wrongdoing.

Mr Pocivalsek told parliamentary board of economy this week that he was in favour of “well-considered” privatisation. Slovenia has been reluctant to sell publicly owned companies and about half of its output still comes from state-owned companies.

Last year, the previous government earmarked 15 firms for privatisation of which three have been sold so far.

Mr Cerar’s government, which took over in September, has pledged to sell all 15 firms and to put more up for sale in coming months.

Slovenia spent more than €3 billion last year rescuing mostly state-owned banks.

Reuters