BRATISLAVA, June 15, (WEBNOVINY) — The business environment in Slovakia worsened further in the first quarter of this year. This stems from a survey conducted by the Slovak Business Alliance (PAS), according to which the business environment index in Q1 of this year shrank 0.6 points from the previous quarter to 90.9 points, which was the second drop in a row. The index’s lowest levels ever were thus beaten. Behind the worsening was in particular the continuous poor evaluation of enforceability of laws, as well as inflation pressure resulting from the increase in VAT rate, excise taxes, and growing prices of some key commodities, PAS comments.
The biggest drop in the first quarter was reported in the item of law enforceability and functionality of the judiciary. The area, which has for long been among the most criticized ones, fell by 5.5 percent to the current level of 20.8 points. Entrepreneurs have been expecting visible and prompt changes towards improving the quality and transparency in the judiciary, without any success thus far.
The second steepest drop was reported in evaluation of price stability by 3.7 percent to 82.5 points. Entrepreneurs feel insecure owing to the accelerating price growth related to the gradual recovery from the crisis, as well as growth of prices owing to the VAT rate increase, along with higher excise taxes on energies. Also, the prices of some key commodities on the global markets have risen, too.
The third most considerable decrease was reported in the indicator of comprehensibility, usability, and consistence of legal rules, which sank 3.2 percent to 34.9 points. Entrepreneurs criticize the presentation of Cabinet drafts and their frequent changes.
On the contrary, the entrepreneurs positively evaluate the item of state economic policy and information accessibility with an increase of 1.7 percent to 87.7 points.
The base period for calculation of the Business Environment Index was July 1, 2001 with the index reference level of 100 points. Respondents assessed changes in the business environment for the first quarter of 2001 for the first time. PAS currently publishes the 39th value of the index, which reflects its changes in the first quarter of 2011. Businesses associated in the alliance report annual sales of about EUR 16.9 billion and employ about 64,000 people.
SITA
