The foremost task ahead of the Slovak government is to adhere to the plan of this year’s consolidation of public finances and reduce the general government deficit below three percent of GDP. This is one of the recommendations that the European Commission published on Wednesday reacting to Slovakia’s National Reform Program. The Commission believes that Slovakia is on the right path to cure its excessive deficit, as thanks to major consolidation efforts, the country has cut it from 7.7 percent of GDP in 2010 all the way to 4.3 percent last year.
Within consolidation Brussels however recommends not to eliminate public expenditures that might restrict economic growth including expenditures in transport infrastructure, science, education and innovations. The document further notes that there's room in Slovakia to gain further finances for the state coffers from broadening the tax base, curtailing the leeway for tax evasion and by making more extensive use of taxes that do not dampen growth – such as property and environmental taxation.
Unemployment is one of the major problems facing Slovakia’s economy, noted the EU Commission’s report, and it is urging Slovakia to make efficient reforms in employment policies and to take more targeted measures aimed at improving conditions for disadvantaged groups on the labour market. "While the recent reform of active labour market policies is an important step in the right direction, additional reform efforts in this area are needed," claims the European Commission. Increasing the ratio of women and older people on the labour market would also help boost the overall employment rate. The document points to the alarming statistics making Slovakia one of the countries with the highest youth unemployment rates in the EU, being a big problem that graduates are facing once they leave school, as the education system is not responding readily to the labour-market’s needs. Members of the Roma ethnic minority still face obstacles in finding jobs and in acquiring proper education. The European Commission claims no effective steps in this area were taken last year.
Katarína Richterová
