KDH Calls on Government to Act as Real Salaries Stagnate and Employment Declines

Bratislava, 13 August (TASR) - The opposition Christian Democrats (KDH) have once again called on the government to take action instead of remaining passive, calling for the financial transaction tax to be scrapped, a reduction in the hourly cost of labour through changes to mandatory levies to social and health-care funds, and incentives for reinvested profits. The party also wants the government to ensure that energy prices for industry are competitive and to publish the parameters of the 2027 budget without delay. The Christian Democrats believe that this is the only way to boost investment, preserve jobs and make the Slovak economy competitive again. "For many years, industry has been the driving force behind salary growth in Slovakia. Today the Statistics Office's data show real salaries in the sector stagnating and employment falling, with half of the monitored industries losing jobs. When companies leave [Slovakia], jobs leave with them. And this isn't just something that the opposition is saying. The labour minister himself admitted that there have been more mass lay-offs this year than last, while the central bank [NBS] reports that a record number of people made redundant in mass lay-offs signed on with labour offices in June," said MP Rastislav Kratky, vice-chair of the parliamentary economic affairs committee, who ascribes this to the absence of an economic strategy. According to Kratky, Samsung in Galanta (Trnava region), Mata Automotive in Velky Krtis (Banska Bystrica region), Mubea in Kezmarok (Presov region) and Askoll near Nove Mesto nad Vahom (Trencin region) are the specific names behind these figures. "This is the bill for the consolidation that the government is pursuing almost exclusively via higher taxes and levies instead of cutting its own spending. It still doesn't have a credible plan for measures to stimulate growth," he stressed. Kratky also warned against false optimism about salary growth in the construction sector. "The government boasts about the construction sector, but one strong sector cannot make up for industry and retail, which employ many times more people and where salaries are stagnating or falling. And there's a need to ask what will happen when we run out of money from the Recovery and Resilience Plan, which even the Institute for Financial Policy identifies as a key factor behind this year's growth in investment," he added. According to KDH, Slovakia needs immediate measures to support investment, the business environment and jobs, or the pressure on employment and salaries will continue. ko/df