Slovakia’s public debt has exceeded 60% of GDP, while analysts now expect economic growth of only about 0.5% this year. Businesses, employers, opposition parties and the President are urging the government to introduce pro-growth measures. The cabinet is already a month behind schedule in presenting the package, though the Prime Minister says it will be ready soon.
The Ministry of Economy is working on a package of 90 measures with experts and employers. Interior Minister Matúš Šutaj Eštok (Hlas-SD) told STVR that he is ready for discussion. According to him, however, energy prices, which Slovakia cannot influence, are the key problem. “So we will prepare these pro-growth measures, but you need political consensus for that, because if we implement pro-growth measures that will lead to a higher deficit, what will KDH say about that?” asked Šutaj Eštok.
Opposition party KDH leader Milan Majerský says that the pro-growth package should have been made public already in March. According to him, the austerity measures have been imposed on ordinary citizens, businesses, and employers. “The government has tightened its belt—by just a tiny notch. The big problem is that the ministries have been living beyond their means,” stated Majerský.
Standard & Poor’s, one of the three major rating agencies, also noted the lack of progress in fiscal consolidation and the significant slowdown in economic growth. It downgraded Slovakia’s rating to A with a stable outlook. According to opposition MP Roman Mikulec (Slovensko), this is a failing grade for the government and especially for Finance Minister Ladislav Kamenický (Smer-SD), whom he is calling on to resign. “Of course, the citizens of the Slovak Republic feel this every day in their wallets and in their daily lives; in fact, Mr. Šutaj Eštok openly stated on the program today that yes, he is aware that people in Slovakia are struggling—that is the path Greece took, unfortunately,” concluded Mikulec.
Prime Minister Robert Fico (Smer-SD) says the government’s approach is shaped by the poor state of public finances and the nature of Slovakia’s small, export-oriented economy, which is highly sensitive to changes in global growth. He pointed in particular to developments in major economies such as Germany, whose performance strongly influences Slovak exports and overall economic stability. "Nevertheless, we are not giving up. Soon, we will discuss a whole package of measures that could at least slightly boost the economy or ease the pressure of high energy prices," stated the Prime Minister.
According to President Peter Pellegrini, the government must present solutions that deliver tangible results. Speaking on private broadcaster TA3, he said he plans to convene a roundtable on economic issues and will invite representatives from a range of companies to take part.
Source: STVR
