Klub 500 Supports Joint Stance by Employers and Unions on Consolidation

Bratislava, 25 August (TASR) - The Klub 500 business association says it is both correct and important that the key social partners have jointly presented, for the first time in history, the specific and rational measures that could bring nearly €2 billion annually into the state budget, TASR reported on the basis of the association's statement on Monday. Klub 500, which represents businesses with more than 500 employees, is joining the Trade Union Confederation (KOZ) and the Republic Union of Employers (RUZ) in their stance regarding public finance consolidation. "What we're witnessing is that the government is repeating past mistakes - making the decisions on consolidation measures behind closed doors, without real dialogue with those who will pay for the consolidation in the end: employers and employees. This approach is unacceptable and undermines trust in the entire process," according to Klub 500. The consolidation of public finances cannot be based solely on further increasing the tax and contribution burden on businesses and people. The state and municipalities must contribute with their optimisation measures and savings, particularly in personnel expenses exceeding €14 billion annually, Klub 500 noted. "If the government fails to address the efficiency of public administration and local government, its consolidation effort will lose all credibility," they added, noting that Slovakia's industry is already struggling with high energy prices, growing regulation and an unpredictable legislative environment. Any further unilateral burdens without a serious discussion could have devastating consequences for competitiveness, investment, and employment, according to Klub 500. The association called on the government to respect the joint stance of employers and trade unions so that consolidation is carried out based on expert and open dialogue with those who will ultimately bear the costs. This is the only way to adopt measures that will be both responsible and sustainable in the long term, Klub 500 noted. jrg