"I believe that we've managed to strike a balance between the consolidation of public finances and what we call the preservation of social standards, plus the introduction of full thirteenth pensions, plus an extensive mitigation of mortgage interest rates, which are social aids of extraordinary importance," said Prime Minister Fico.
The savings were achieved on the one hand through cuts in pension contributions, and higher health insurance premiums; and on the other hand, through extra revenue, mostly from a windfall tax on banks, and also higher taxes on tobacco and alcohol. The total package of measures comes to almost 2 billion euros.
Prime Minister Robert Fico says they will raise hundreds of millions from the banks alone. These measures created space for the so-called 13th pension and a €365 million increase for the parental pension, and other election promises by the government.
Other measures that have been taken: The national holiday Constitution Day of the Slovak Republic should no longer be a day of rest; court and administrative fees will increase; and the public broadcasting organization RTVS will see its budget cut by 30%.
The Health Ministry is getting an extra €250 million.
Reactions were varied.
Marián Viskupič, of the Freedom and Solidarity Party (SaS) said: "The increase in taxes and levies will be felt by absolutely everyone in their wallets. The government pretends to be generous with the 13th pension or other social benefits, but in the end we all pay for it. Robert Fico revealed his true face. The government's tax laws are a disaster for Slovakia and its possible economic growth."
Štefan Kišš of the opposition Progressive Slovakia party highlighted the reduction of contributions to the pension systrem. It comes at the expense of future pensioners, he said.
Former Prime Minister Igor Matovic, now chair of the Slovakia Party, said the Government is going to take a total of €1.3 billion away from the people annually via bills, deliberated on in a fast-track procedure.
Matovic claimed that all employees and the self-employed will pay €399 million in higher healthcare premiums.
"In the second pension pillar, the state will take away €365 million from their pension savings. The Government of Robert Fico (Smer-SD) will take €150 million from state employees, including teachers, by not valorising their salaries. The tax on cigarettes and alcohol will also be paid by people, about €124 million," claimed Matovic, adding that entrepreneurs with businesses in the red will lose additional €107 million.
The loss of one public holiday translates into €59 million for employees.
Bickercaarten Michiel, Photo: TASR
