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Markets have reacted negatively to the political problems in Ljubljana (Photo: European Commission)

Markets punish Slovenia for political crisis

Slovenia's borrowing costs have reached 'bail-out territory' after lawmakers rejected the premier-designate, putting the euro-country on the line for further downgrades by ratings agencies.

Zoran Jankovic, the mayor of Slovenia's capital Ljubljana, fell four votes short of the 46 needed to be approved as prime minister by the parliament, with the country's president set to re-cast his name or propose someone new within two weeks.

Jankovic's Positive Slovenia - a centre-left par...

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Markets have reacted negatively to the political problems in Ljubljana (Photo: European Commission)

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