BRATISLAVA, August 26, (WEBNOVINY) — According to entrepreneurs, the business environment in Slovakia moderately deteriorated in the second quarter of this year. The current value of the business environment index, according to result of a survey carried out by the Business Alliance of Slovakia (PAS) is 90.4 points. This is a decline by 0.51 percent from the previous quarter. Behind the deterioration is unsatisfactory situation in the area of enforceability of laws. The alliance adds that the government’s efforts to improve the business environment, partly neutralized by uncertainty on global markets, could not prevent a drop in the index to a historic minimum.
The Business Alliance further stated that entrepreneurs have very little trust in the judiciary. They are mostly dissatisfied with the length of court proceedings and insufficient impartiality of people working in the judiciary. A considerable part of criticism is related to weak protection of creditors, displayed by low success rate in recovery of receivables. Businesses expect more measures with immediate effect. They are also concerned over shaky price stability. As inflation is driven by transportation and energy prices, entrepreneurs are worried about a potential acceleration of price growth, related to the regulator’s decision on energy prices. “Potential return of the crisis and consequent recession is negatively perceived, too,” the alliance adds.
The third biggest drop was reported in the item of reliability and financial discipline of business partners. Persisting poor payment discipline causes problems to entrepreneurs. Businesses also complain about stability and predictability of the euro’s exchange rate. “Entrepreneurs are also bothered by excessive bureaucracy and protracted proceedings at public offices, as well as insufficient application of the principle of equality before a court,” the alliance comments.
Labor legislation was evaluated most positively in connection with the amended Labor Code. The new rules are to bring flexibility in reacting to market requirements and a possibility to flexibly respond to customers’ needs. Furthermore, Slovak businesses positively assess the state’s economic policy, access to information and financing.
SITA
