KOZ and RUZ Join Forces to Propose Consolidation Measures Worth €2 billion

Bratislava, 20 August (TASR) - The Trade Union Confederation (KOZ) and the National Union of Employers (RUZ) have agreed on their own proposed consolidation measures with the potential to contribute as much as €2 billion to the state budget annually, TASR reported on Wednesday based on a joint stance released by KOZ and RUZ on the same day. They expect the measures to have a beneficial, or at least minimally harmful effect on employees, the business environment and economic performance. First, RUZ and KOZ published their own sets of consolidation measures. Then, following negotiations, they have reached - for the first time in Slovakia's history - an agreement on areas where public finances could be consolidated. Possible savings of €250 million annually could be achieved by reduced spending on goods and services in the public administration sector, with an additional €160 million to be generated by aligning energy expenditures in the general government budget with the actual situation. A further €160-400 million could be gained by targeted energy subsidies for households, and up to €200 million a year by merging the powers of municipalities. The largest financial package - worth as much as €0.5 billion annually over a ten-year period - would involve selling state-owned real estate not directly associated with the carrying out of public administration functions, such as various recreational facilities, buildings, plots of land, flats and non-residential premises. An additional €250 million could be generated by implementing government-approved measures aimed at revising general government expenditures as proposed by the Value for Money Unit. Reducing the VAT collection gap to the EU average could yield a further €150 million. RUZ president Miroslav Kiralvarga noted that consolidation is necessary, but stressed that it must be done wisely and after expert discussions. He called on the government to respect this joint stance and allow a fair process in terms of social dialogue. "This is the only way to adopt measures that are both responsible and sustainable," he said. jrg/df/mf