Fico: Gov't to Hold Special Session on Car Industry Problems in Early July

Bratislava, May 5 (TASR) - A special session of the Slovak government focused on the challenges facing the automotive industry is likely to take place at the beginning of July this year, Prime Minister Robert Fico (Smer-SD) announced on social media following Monday’s meeting with representatives of the automotive sector. Fico also indicated that Parliament could discuss the introduction of a Kurzarbeit scheme — a state-subsidized short-time work — during its May session. “At the Government Office today, we hosted important guests — representatives of the automotive industry, which plays a key role in the Slovak economy. We are jointly concerned about high energy prices, for which the European Union offers no practical solutions. On the contrary, the EU’s politically motivated pressure to stop energy supplies from the East is creating conditions for further increases in gas prices, which also affect electricity prices,” Fico stated. Industry representatives raised concerns about the lack of qualified workers, including those from abroad, and specific issues related to industrial waste management. According to Fico, the overarching issue was the potential impact of the US proposal for 25 percent tariffs on cars produced in Europe. “Let’s remember: Slovakia has such a high concentration of car production that, when calculated per capita, we are world leaders. These American tariffs pose a serious threat to employment in Slovakia. That’s why we discussed whether it would be more appropriate to implement a partial wage subsidy scheme (Kurzarbeit) for workers who cannot be assigned to production lines due to falling orders, rather than allowing layoffs that could have severe social consequences,” he stressed. In addition, the government plans to focus on using EU funds to support the automotive sector, as well as possibly introducing EU-level measures such as car scrappage schemes. “At this stage, I can confirm we are actively reviewing legislative and financial options for implementing Kurzarbeit. If ongoing fiscal consolidation allows it — at a time when we must cut costs, not create new expenses — this measure could be passed in a fast-tracked legislative procedure during the May parliamentary session,” Fico noted. He added that a thorough discussion at the government level will be needed. “I’ve also offered automotive industry representatives a special cabinet meeting focused on the challenges facing car production. We already held such a session in February 2024, and I believe that, in cooperation with the relevant companies and industry association, we’ll be able to organize another one in early July,” the prime minister concluded. mf