SaS: Gov't Consolidation Lags, Planned Measures Only to Make Situation Worse

Bratislava, 27 August (TASR) – People are paying increasingly higher taxes and fees, life is becoming more difficult, the government is spending more than ever, and the Slovak economy is sinking into stagnation, the opposition's Freedom and Solidarity (SaS) party stated on Wednesday. The SaS party criticised the government for delaying the presentation of next year's fiscal consolidation plan while simultaneously preparing measures that could further worsen the situation. „Let us therefore call on the government to immediately start consolidating, but to consolidate on its own side – the side of the state, the government – to stop throwing away public finances, the money of all of us, and to immediately present what impoverishment of citizens they're planning in the coming months," said SaS chair Branislav Groehling at a Wednesday press conference. He described the current fiscal consolidation efforts as a failure. Despite measures worth billions, the public finance deficit is not decreasing, the economy is declining, and inflation remains among the highest in the EU, Groehling noted. „New consolidation plans should have been presented long ago. 'Consolidation' is a nice word, but under this government, it really means the impoverishment of citizens. What have they been doing the last two months? Holidaying, ignoring what's happening in Slovakia," he added. Marian Viskupic, the vice-chair of both SaS and the parliamentary Finance Committee, also criticised the government and the Finance Minister for failing to learn from past mistakes. „I am convinced they are about to repeat the same errors again this year. Once again, they believe the burden should fall on the citizens, on the productive part of the economy," he said. According to Viskupic, several proposed measures could lead to higher prices. He expects, for example, that certain food items may be moved from the reduced 19 percent VAT rate to the standard 23 percent rate. „Another key issue under government consideration – and we know this from discussions within the food industry – is the introduction of a special levy on retail chains, similar to those in regulated sectors," Viskupic explained, calling it an absurd measure that would go against EU rules. There are also talks about raising land and property taxes for retail chains. Viskupic warned that increasing taxes in sectors such as banking or defence manufacturing would be ill-advised. „Nothing shows the flawed economic thinking of the Finance Minister and the entire government more clearly than wanting to additionally tax the very sectors that are performing well," he concluded. In his view, the government should instead implement measures that support the economy and the business environment. mf