Opposition Criticizes New Energy Aid Law as Wasteful and Misguided Use of EU Funds

Opposition Criticizes New Energy Aid Law as Wasteful and Misguided Use of EU Funds

The new law on energy aid does not bring targeted support but continues to be a blanket “throwing away” of money. Another mistake, according to critics, is the government’s effort to use EU funds for this purpose, which should be allocated for entirely different goals. This was stated by several opposition members of Parliament of the Slovak Republic in response to the law approved on Wednesday.

“We see this law as an admission that, according to the government, 90 to 95% of people in Slovakia are poor and need energy aid. We don’t think that’s true. We believe this is an unnecessary waste of money at a time of fiscal consolidation,” said opposition Progressive Slovakia (PS) MP Ján Hargaš, who also opposes covering the measure with EU funds.

He also criticized the creation of a new registry of data on all Slovak residents for the purpose of assessing eligibility for energy aid. “We proposed that the law should include an option for people to refuse such extensive data collection planned by the Ministry of Economy. It will involve the most sensitive information about income and property, and we disagree with that. Our proposal was rejected, which is why we could not support this law,” added Hargaš. In his view, a better solution would be to introduce a housing allowance, which PS has long advocated and which would only collect data from those who voluntarily apply for assistance.

The opposition Christian Democratic Movement (KDH) also criticized the plan to cover the planned €435 million in energy aid for next year from EU funds. “Energy aid should be targeted, which would make the overall amount smaller but would help those who are most vulnerable. Instead, the government decided to literally burn EU funds in boilers and help up to 90% of people,” said the head of the KDH parliamentary group, Igor Janckulík.

His party colleague Martin Šmilňák argued that this is not energy aid but rather an “energy bribe,” given to nearly everyone in Slovakia as a small compensation for fiscal consolidation. “We could have used the money, for example, to insulate homes or replace boilers with more efficient ones, which would have saved much more,” the opposition MP said.

On Wednesday, Parliament definitively approved the new law on targeted energy aid prepared by the Ministry of Economy of the Slovak Republic. Starting next year, households will receive targeted assistance, while the current blanket compensation of energy costs will come to an end by the close of this year. Details of the aid will be determined by a government decree that still needs approval.

Source: TASR

Jeremy Hill, Photo: TASR

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