Slovenia goes to polls, with PM ahead 

Slovenians vote for a new parliament on Sunday in what should be a tight race between centre-right Prime Minister Janez Jansa and his centre-left challenger Borut Pahor in the prosperous ex-Yugoslav republic.

The new government's priority will be to keep spending in check and curb high inflation while keeping the booming economy on track despite a global financial meltdown.

Both camps pledge further market liberalisation to help reach that goal.

While opinion polls last week gave a sizeable advantage to Jansa's Democratic Party (SDS) over Pahor's Social Democrats (SD), some online surveys this week indicated Pahor's party could win.

Analysts say either party will need coalition partners to form a new government and such negotiations could last for weeks or months.

"There will be high degree of policy continuity (regardless of the outcome)," said Christian Jenni of credit rating agency D&B.

Both promise to open up their markets more and a gradual sell-off of the dominant state-owned firms, which Slovenia has preserved from the socialist era and modernised. The Social Democrats promise to cut defence spending and boost welfare.

Slovenia's inflation reached a six-year high 6.9% this summer - by far the highest in the euro zone, which the country joined in 2007. But its economy is also the most robust in the wealthy club, while unemployment is at a low 4.2%.

"Jansa's government presented Slovenia to the world well, I think living has improved. I do not think that prices have gone up that much and there is no reason for people to buy the most expensive things anyway. I hope he wins again," said 75-year-old Barbka Grcar, a vegetable saleswoman at the Ljubljana market.

Some analysts say the centre-left parties could be more open to improving media freedom, which worsened in 2005 after Jansa's cabinet gave the government more control over state television and radio.

"It is high time the government changes. The past four years have sent us back to the 20th century. Health, education and economy have suffered severely," said IT consultant Luka Kovac, 32.