Week in Slovakia: Consolidation measures approved

Week in Slovakia: Consolidation measures approved

Consolidation package approved by the parliament, towns warn it will negatively impact their budgets and they will need help from the government, prime minister asked about the anti corruption measuers at a meeting with GRECO and Slovakia will evacuate citizens from Lebanon.

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On Thursday, the parliament approved a package of measures to consolidate public finances next year. It includes, for example, an increase in the basic rate of value-added tax (VAT) from 20 percent to 23 percent, a drop in its reduced rate from 10 percent to five percent, as well as the introduction of a new 19 percent rate on some items. Corporation tax will also increase from a certain amount of companies' income. Entitlement to the child tax bonus or the so-called parental pension was changed. A transaction fee for companies was introduced. Different parts of the consolidation package will enter into force gradually, the first of them from November this year.

Earlier in the week, the Medical Trade Union informed that if the draft consolidation measures are approved by Parliament, they will start collecting doctors' resignation notices. According the unions head, the government ignored warnings from doctors and nurses while drafting the consolidation measures. The proposed consolidation measures in the health-care sector entail slowing down increases in health-care workers' salaries as well as the transformation of state hospitals into joint-stock companies. Both health-care organisations and the opposition have criticised the measures.

Towns are unable to set their budgets for 2025, as consolidation measures will also negatively affect local governments, the Union of Slovak Towns (UMS) has warned. According to the head of the Union, Budgeting in towns will be difficult, and options for governments to increase their own local revenues are limited, so town will need the help of the state.

Prime Minister Robert Fico met with representatives of the Council of Europe's Group of States Against Corruption (abbreviated GRECO) to inform its representatives about the climate in which Slovak society has found itself since 2018. The main topic of the meeting was the fact that the Slovak government has so far fully implemented only three of the 21 measures proposed in 2019.

Opposition MP Lucia Plaváková from the PS party announced on September 30 that she will appeal to the Constitutional Court of Slovakia. She plans to file a complaint citing harassment and discrimination that limits her parliamentary mandate and freedom of expression. The controversy began when Parliamentary Vice-Chair Andrej Danko expelled her from a session due to stickers on her laptop.

Peter Kotlár, the government representative investigating the management of the pandemic, presented his first findings. He claims that the coronavirus was artificially created in a laboratory and deliberately spread around the world. In the fight against the pandemic, he criticized the inoculation with mRNA vaccines and widespread testing. Virologists disagree with part of Kotlár's analysis and opposition criticised the findings because of the lack of arguments.

The police corps chief Ľubomír Solák met with Financial Administration President, Bratislava City Police Chief and Bratislava Mayor to discuss recent raids in clubs across Bratislava. The meeting focused on streamlining procedures to minimize the impact on individuals and businesses not involved in illegal activities. During the latest operation, several plastic bags containing a white crystalline substance were seized, and five individuals were detained, interrupting a concert.

Starting in 2025, Slovaks will have the option to use electronic versions of the two most essential documents: the identity card and the driver's license, it follows from an amendment approved by the government. According to the Interior Minister, a technical solution is currently being developed, ensuring that the application will be fully operational by January.

Acting Statutory Representative of Slovak television and radio, Igor Slanina, will remain in his position until the end of 2024. The extension of his mandate was decided by the acting Speaker of the parliament. Slanina, was initially appointed on July 1st with his term set to expire on September 30th. The election of a new director is pending, awaiting 5 new members of the STVR Council that need to be nominated by the parliament.

According to Minister of Defence, Slovakia wants to compete for the placement of a NATO centre of excellence in the Military Technical and Testing Institute in the Trnava region. The minister said that more information will be available next year. He also pointed out that Slovakia can in addition to this offer its surplus production capacities to other countries.

Minister of Economy, Denisa Saková, signed two key memoranda with South Korea on Monday to enhance cooperation in energy and economic development. The agreements, announced by the Ministry of Economy, focus on strengthening collaboration in energy, trade, and investment between the two countries.

Slovakia could play an important role in the construction of a new, more powerful accelerator at the European Organisation for Nuclear Research (CERN), and Slovak students and PhD students could also participate in it, President Peter Pellegrini stated during his visit to CERN to celebrate the 70th anniversary of the institution's founding. During the visit, he also held bilateral talks with Swiss President Viola Amherd.

Minister of Culture, has dismissed the Director-General of the Slovak National Museum, citing "multiple managerial failures" as the reason, but the report lacked specific reasons. The interim head of the Slovak National Museum is Anton Bittner, who was appointed interim director of the Slovak National Gallery after the dismissal of the former director Aelxandra Kusa in August. Bittner was however removed from the position of the head of the National Gallery also this week.

The Foreign Affairs Ministry has confirmed that there have been no reported injuries or casualties among Slovak citizens in Israel or Lebanon amid the escalating conflict in the Middle East. The Ministry continues to advise Slovaks in Lebanon to leave the country. Slovakia is set to send an evacuation military special later on Friday. It will also take a humanitarian shipment of more than two tonnes of food and medical supplies to Lebanon.

Slovakia has dropped to 41st place in the ranking of the 60 wealthiest countries, with net financial assets per capita of €9,160, according to the Allianz Wealth Report 2024. The report compares household financial assets and debts in 60 countries worldwide.

The state-budget deficit amounted to €2.68 billion at the end of September 2024, the Finance Ministry reported.

Martin Bednárik

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