EC suspends special levy for retail chains

The European Commission has required Slovakia to suspend the application of the law imposing a special levy on food retail chains that was introduced at the proposal of the Slovak National Party. The levy was set at 2.5 percent of net turnover, with the argument that this would support Slovak farmers and domestic food producers, as the money obtained from the levy would be used to create both a risk fund and a marketing fund to support the sale of Slovak food. The retailers do not have to pay the levy for the time being as the European Commission will analyse the law in depth to see if it infringes the EU regulations on state aid. Agriculture Minister Gabriela Matečna (a Slovak National Party nominee) was displeased by the European Commission's decision, saying it was the result of pressure placed on its clerks by lobbyists for the retail chains.