"Slovenia is a stable country that can resolve its own problems including its public finances. Any comparison to Cyprus in that regard at this time is unnecessary and inappropriate", said Bratusek at a meeting with President Borut Pahor.

Pahor wished the new government success in dealing with the challenges facing the country, adding that that would require courage but also a dose of luck offering his help.

He reminded the new government of his initiative on a development strategy until 2030 and of a conference he has scheduled for next month hoping to attract all creative and intellectual forces in the country.

The new prime minister whose cabinet was confirmed last week in the parliament said that the government's actions in the year to come were crucial as she had limited her term in office to one year after which she would call for a confidence vote in the parliament and of the electorate.

Over the past few weeks speculation has grown that Slovenia could be a new Cyprus due to its vulnerable economy and that it would soon have to seek financial assistance to salvage the euro, Slovenian experts and the media however, believe that the situation in the two countries is quite different.

Slovenia's debt in relation to GDP is much lower than in Cyprus and interest rates on Slovenian government bonds do not suggest that it is in a position to require assistance from the EU, Slovenian media reports.

Quoting sources from Brussels, Slovenia's STA news agency reports that the European Commission has assessed that it is vital that Slovenia tends to its banking sector which is burdened with non-performing loans or else it would soon be faced with hardship.

The next two months will be crucial to see if measures to rehabilitate banks will be effective or whether Slovenia may have to look for help, STA reports.

Slovenia's central bank has said that the situation in the country is not like in Cyprus and that the country is capable of handling its own problems.