The revival of Slovak public finances is necessary and the incumbent Government must reverse the ongoing trend and put a lid on the growing deficit, a fact the Finance Ministry is well aware of, thinks Slovak Central Bank (NBS) Governor Peter Kazimir. Kazimir doesn't expect Slovakia to have any trouble borrowing money on financial markets in the following years.
"When the deficit and debt are growing all around you, then you can afford to increase it, too. But when the deficit and debt are being cut and you go against the grain, then you have a problem. And that's the situation Slovakia currently finds itself in," underlined Kazimir during the presentation of the new NBS forecasts on Thursday. He warned that the actual trend in Europe is austerity and deficit cuts.
Kazimir pointed out that the consolidation is also necessary for the meeting of eurozone budgetary rules. Paradoxically, Slovakia had usually belonged among countries that carried out their homework well, noted Kazimir, who had also served as the finance minister in the past. Kazimir is in touch with incumbent Finance Minister Ladislav Kamenicky and emphasized that Kamenicky is well aware of the situation, in which he took over public finances.
