BRATISLAVA, January 26, (WEBNOVINY) — The government’s consolidation plan, which counts on reducing the general government deficit below three percent of gross domestic product (GDP) in 2013 is not going badly, according to Governor of the National Bank of Slovakia (NBS) Jozef Makuch. The central bank expects the government will meet the plan. “We can expect that we will fulfill [the Maastricht] criterion in Slovakia, if not in 2013, for sure in 2014,” said the governor at Wednesday’s meeting with representatives of the Slovak-Austrian Chamber of Commerce.
According to Makuch, Slovakia has a relatively complicated coalition made up of parties from the liberal part of the political spectrum to the conservative part of the spectrum, and the government has to make compromises when seeking solutions to problems. The commitment to consolidate public funds is not simple, but in his words, it is very good that this program was drawn up. It can help Slovakia, which the central bank welcomes.
The NBS governor considers the plan of the Finance Ministry to enact by law the cap on the public debt to be a good initiative. Makuch finds it useful. The main risk factor in the consolidation package is its impact on gross domestic product, he said. Makuch points out that consolidation will negatively affect economic growth only in the short run, while it will be beneficial in the long run.
SITA