RUZ: Pro-growth Measures Need to Be Prepared Without Delay (2)

Bratislava, 9 June (TASR) - The government should present measures to support economic growth without delay, otherwise salaries won't grow, either, the National Union of Employers (RUZ), which represents companies employing over 380,000 people, stated on Tuesday. According to RUZ, the upcoming state budget should be based on legislative changes only after they are adopted, while the state should cover shortfalls in public finances by cutting back on its own expenditures. "Companies are struggling and are afraid to take out loans and invest. This has been caused by uncertainty triggered by the consolidation of public finances, higher taxes and levies, and an unfavourable trend in revenues. Companies in Slovakia have long been burdened by high energy prices, making it impossible for them to compete on foreign markets in many cases," said RUZ president Miroslav Kiralvarga. To reverse this situation, RUZ proposes reintroducing a flat tax rate for both businesses and individuals, scrapping the transaction tax, and simplifying VAT by abolishing the three different rates. At the same time, RUZ demands that red-tape should be curtailed significantly, while labour law should be made less strict. Furthermore, RUZ representatives expect cuts to be made directly in state expenditures instead of imposing an additional burden on businesses, and they're ready to cooperate with the government in designing such measures. Along with other employer organisations, they've already provided the Economy Ministry with 200 measures that other ministries had subsequently scrapped. "This boiled down to 11 measures bringing a minor positive effect to the business environment, but we shouldn't call them pro-growth measures, because it's a small anti-bureaucracy package," said RUZ vice-president Jozef Spirko. The Economy Ministry clarified that the government-approved stability framework contains 49 measures. Of these, six are already in the legislative process or under discussion in Parliament, 11 form part of a draft law, and a further 32 measures are included in a government resolution. "The next steps will be decided in September during preparations for the 2027 state budget and in light of options available by the state of public finances," the ministry said, adding that measures with a more significant fiscal impact will also be subject to negotiations during the budget preparation process. In addition, the ministry pointed out that broad cooperation with employers' associations, social partners, professional organisations, the academic community and the business sector resulted in 90 proposed measures divided into five key areas. Subsequently, the Economy Ministry received hundreds of additional specific proposals and recommendations from employers' organisations, associations and other partners. These were further reviewed by the ministries responsible for the respective policy areas. Thus, the ministry considers its task of preparing the stability framework — entrusted to it jointly with the Finance Ministry and the Ministry of Investment, Regional Development and Informatization — fulfilled "properly and on time". NOTE: This story has been extended to include the final four paragraphs jrg/mf