Earlier today the Constitutional Court ruled on the constitutionality of the 2013 banking bail-in. Back then, Slovenia was on the brink of a financial meltdown with investors and money-men in general being overtly nervous that the country will follow Greece and Cyprus and further lengthen the odds of survival of the common European currency. Once the amount of bad debt and other toxic assets within the banking system was established (5 billion euro cumulative) the nitty-gritty of actually coughing up the dough was worked out. It was decided, mostly by the European Commission, that state-aid-like recapitalisation of the mostly state-owned banks was allowed only if private investors took the hit along with the taxpayers. Effectively, a complete nationalisation.
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