KDH: Slovakia among Fastest-growing Debtors in EU, Gov't Unable to Do Anything

Bratislava, 25 July (TASR) – Slovakia, along with Austria, is accumulating debt at the fastest rate in the European Union (EU), and although Finance Minister Ladislav Kamenicky (Smer-SD) claims that fiscal consolidation could slow Slovakia's debt growth and potentially halt it by the end of the current government"s term, the opposition Christian Democratic Movement (KDH) warned on Friday that all indicators suggest the debt spiral will continue. The country’s public debt rose by 3.5 percent of GDP – more than €5 billion – in the first quarter of this year when compared to the final quarter of 2024, The party pointed out that the government had planned to collect an additional three-quarters of a billion euros this year through higher VAT rates, but it may end up collecting only a third of that amount. "It is becoming clear that the government cannot collect the taxes that it has on paper. We've been repeating this since the Robert Fico government took office, especially since last September when it introduced an unacceptable version of the current consolidation package," stated the Christian Democrats. According to the party, this development will lead to the need for further consolidation measures, which will ultimately be borne by ordinary citizens. The Council for Budget Responsibility (RRZ) estimates that new measures worth 2 billion euros will be needed next year, with similar steps expected to continue until the end of the government's term. "Minister Kamenicky, when will you step forward publicly, admit your failure, and present corrective measures? You promised proposals would come in the spring. We"re now in the middle of summer and still nothing. If you continue governing as you have, Slovakia’s gross debt will continue to rise sharply and, according to RRZ, will exceed €100 billion for the first time in the country’s history during the standard election year of 2027,” said MP Jozef Hajko, the Christian Democrats' economic expert. He described this trajectory as a "clear path to bankruptcy", with severe consequences for ordinary citizens and their living standards. The party reiterated its call for the government to cut its own spending and stop wasting money. "We also expect the government to start collecting taxes properly and, last but not least, to adopt measures that will stimulate investment and economic activity in Slovakia; measures that we presented to the government a year ago," added the Christian Democrats. mf/df