SlovakiaS Coalition Government Grapples with Contentious Consolidation Measures
Table of Contents
Slovakia’s governing coalition is facing internal divisions as it attempts to finalize a package of austerity measures, known as “consolidation,” aimed at stabilizing the nation’s finances. While Finance Minister Ladislav Kamenický initially planned to introduce the measures this week, the timeline remains uncertain amid disagreements over key components, including potential cuts to public holidays and increased taxes.
Delayed Decisions and Coalition Discord
The Prime Minister was scheduled to meet with Kamenický on Saturday to attempt to reach a consensus on the next steps. A coalition council meeting is planned for Monday, a week after their previous session. Fico’s recent trip to China, he stated, has somewhat hampered negotiations.Despite this, he emphasized the need to finalize the debate, noting, “There are dates that won’t let us go. We can’t stretch it anymore.”
Key Points of Contention
Several sticking points are fueling the discord. Andrej Danko, leader of the Slovak National Party (SNS), hinted at a potential link between the budget vote and a vote of confidence in the government. He expressed frustration with the lack of progress on critical issues, particularly regarding healthcare and emergency services. “I said quiet nervously that I was not at the Coalition Council for the fifth time and you haven’t traced what you want to do with the healthcare and rescue system yet,” Danko stated in a recent political program.
A important area of disagreement centers on defense spending. Both Danko and Matúš Šutaj Eštok, a leading figure within the Voice party, have voiced opposition to a proposed EUR 150 million increase, arguing that savings should be found in other areas. Danko proposed a revised accounting method for defense expenditures, potentially including costs associated with security and infrastructure projects, mirroring a model used in the Czech Republic. He also suggested merging squadrons from the Ministry of the Interior and the Ministry of Defense to artificially inflate defense spending figures.
The stance of Defense Minister Robert Kalinak regarding danko’s proposal remains unclear.
Taxing Measures and Potential Sacrifices
The coalition is also debating various tax increases, including a potential 30% tax on gambling. Tourism Minister Rudolf Huliak, whose ministry oversees gambling, has advocated for different tax rates for online and brick-and-mortar casinos, proposing 27% and 21% respectively.
Moreover, the cancellation of the transaction tax for small businesses and sole traders remains under consideration, with a parliamentary vote scheduled in the near future. Concerns have also been raised about potential cuts to funding for sports and the arts, and also proposals to merge administrative offices, including counties. A controversial proposal to shift the obligation for VAT payment to the end user in certain services – described by one official as a way to “literally steal for VAT” – is also on the table.
Public Holiday Cancellations: A Temporary fix?
A potential agreement has emerged regarding the suspension of public holidays as a cost-saving measure. The initial plan focused on November 17th, which would remain a public holiday but not a paid day off.However, parliamentary approval for this change is still pending.
Opposition officials suggest the government is considering canceling up to four public holidays next year. Tibor Gašpar, Vice-President of Parliament, confirmed that the November 17th agreement is currently in place, with further discussions planned. He added,”Yes,it is one of the tools that can bring hundreds of millions of euros in the order.”
However, Gašpar later clarified that the cancellation of public holidays could be a temporary measure, dependent on the overall success of the consolidation efforts. “It would be considered a temporary measure, it would depend on how it will be in the coming years consolidation To develop,” he stated. This contradicts earlier statements suggesting a one-year solution. Michal Šimečka, Chairman of Progressive Slovakia, criticized this approach, questioning whether the government would resort to further measures, such as weekend work, if the economic situation remains dire.
