Premier: Government Has Stabilised Public Finances, Inherited Worst in EU

Bratislava, 21 May (TASR) - Since taking office in 2023, the current government has stabilised the devastated public finances inherited from previous administrations, which were in the worst condition in the entire European Union, and while achieving a balanced budget is currently impossible, it aims to hand them over to its successor in a "normal" state, said Premier Robert Fico on Wednesday after a meeting with Finance Minister Ladislav Kamenicky (both Smer-SD). Fico stated that while the cabinet led by Smer-SD handed over public finances to the incoming government in 2020 with a deficit of €1 billion, it inherited them with a deficit of €8.5 billion. Public debt during this time increased from €45 to €70 billion, Fico said, adding that if his government had continued on this path, the debt would have risen to €110 billion by 2027. "But our goal is clear, to hand over public finances in normal condition to the next government after the upcoming general election. Forget about a balanced budget for now, that's a fiction, it's impossible. But we're pushing for a significant reduction in the deficit, we're pushing for the stabilisation of public debt, we're pushing for all the figures to ensure that our finances are in some kind of order," the premier stated. According to Fico, the Smer-SD party is prepared to significantly cut state spending as part of further consolidation. This could include a substantial reduction in the number of civil servants, as well as local governments and MPs, alongside stricter conditions for parties to enter Parliament, Fico said. However, he expressed doubts that other coalition or opposition politicians will agree with these changes. "We're ready to start with cuts to the state, but we need genuine agreement from our coalition partners and the opposition. Everyone says, 'Start with the state'. Fine, let's do it, 500 local government units, while fully respecting the titular roles of mayors and municipal councillors, three regional authorities, 100 MPs, and an increase in the electoral threshold from 5 percent to 7 percent , with state funding granted only to those parties that secure 7 percent and gain entry to the House," Fico explained. lin