UMS: State Management Real Problem, Not Local Governance

Bratislava, 2 July (TASR) - The problem in Slovakia isn't local governance, but the way in which the state is managed, president of the Union of Slovak Towns and Cities (UMS) Richard Rybnicek has declared in response to statements by the National Union of Employers (RUZ) regarding the rising expenditures of municipalities, towns and regions between 2007 and 2025. "RUZ correctly points to the need to use public finances efficiently. We agree on that. However, I don't agree that the main problem in Slovakia is primarily local governance. The real problem is the way in which the state is managed," said Rybnicek. He added that Slovakia has for years been unable to answer a fundamental question: what kind of state it wants to be, how many levels of governance are needed, and which decisions should be made by the government and state authorities, and which by municipalities, towns and regions. "This is the essence of state reform, which has never been completed," he said. According to Rybnicek, UMS has been warning for a long time that the state has retained too many powers and offices, while transferring new responsibilities to regions and towns and municipalities without adequate funding. The result, he said, is rising costs, unnecessary bureaucracy and services that people don't perceive as having improved. "If we want a more efficient state, we shouldn't start by looking for a culprit among towns and municipalities. We should start by finally defining what the state should do and what local authorities should do, and then set powers and financing accordingly," he underlined. "I believe that RUZ will also be a partner in the discussion on real state reform. UMS has been preparing concrete proposals for changing how the state functions and for decentralising powers for a long time now. We're ready to meet representatives of RUZ and present our proposals. I'm convinced that a more efficient Slovakia can't be built without such reform," he added. According to analytical data on public finances compiled by RUZ, municipal, town and regional expenditures in Slovakia have almost tripled since 2007, rising from €3.8 billion to €11.2 billion in 2025. After adjustments for inflation, local government spending has increased by about 80 percent over the past 18 years. Revenues have grown at a similar pace, rising from €3.8 billion to €11.1 billion. mf/df