Three weeks ago, employer representatives presented their proposal for consolidation measures to Finance Minister Ladislav Kamenický (Smer), initially revealing only that their suggestions wouldn’t require tax increases and were divided into four categories. On Wednesday, they returned to the Ministry of Finance and publicly unveiled their 20-point plan, which the Republic Union of Employers (RÚZ) claims could generate €6.5 billion. This far exceeds the €1.8 billion consolidation target the minister has set for next year.
Employers believe significant savings—up to €2 billion—can be achieved by gradually reducing public sector employment by about 15%, noting that the number of public administration workers has increased by 100,000 over the past 15 years. “One in five employed people in Slovakia works in public administration,” they pointed out. Some of the savings could come from not replacing half of the retiring public employees over the next 10 to 15 years and cutting back staff managing EU funds. RÚZ also suggested reforms in higher education and a three-year freeze on public sector wages.
Eliminating two national holidays as public rest days could bring in over €300 million. Employers also propose abolishing recreational vouchers and housing loan repayment subsidies. Eliminating early retirement could save €400 million, with RÚZ arguing that unemployment and sickness benefits are sufficient for those unable to work just before reaching retirement age.
Another €150 million could be saved by abolishing redundant public institutions and offices, such as moving the Gambling Regulation Office under the Ministry of Finance or financial administration. They also suggest closing 40 regional veterinary and food administration offices, calling the current system inefficient.
RÚZ maintains that their plan would stabilize and sustain public finances without harming the business environment. “Raising taxes is a simple fix for bad governance,” said RÚZ President Miroslav Kiraľvarga.
Prime Minister Robert Fico (Smer) reiterated last week that the current government must consolidate public finances due to the failures of previous administrations—excluding his own. He criticized the employer proposals, asking if they were serious about cutting pensions and questioned why they weren’t offering sacrifices themselves. Fico cited suggestions such as canceling the 13th pension payment, free train travel for students and pensioners, and free school lunches. “Free trains cost the budget €35 to €40 million, but we need to save billions,” he said.
As a left-wing politician, Fico rejected the employers’ path and countered with: “What if we answered: ‘Let’s raise taxes on people with above-standard incomes and explore progressive business taxation’? That’s an answer, too.”
RÚZ denies advocating for the complete cancellation of the 13th pension. “Our goal is to target benefits more accurately, but we’re not in favor of scrapping the 13th pension entirely,” clarified Kiraľvarga.
RÚZ grouped its 21 proposed consolidation measures into four categories. Introducing targeted state aid could save up to €2.4 billion. Strictly cutting expenses previously identified in government spending reviews could yield another €1 billion. “We also mentioned merging schools and canceling subsidies for schools that can’t manage their finances—there we could save around €130 million,” said Kiraľvarga.
Finally, adjusting the state and public sector energy budget to reflect realistic needs could save €160 million this year, according to employers, citing developments from the last two years as proof.
Source: Dennik N
