BRATISLAVA, January 9, (WEBNOVINY) – Measures of the previous government of Robert Fico, adopted during the crisis for employers, entrepreneurs, unions and bankers were justified, said President Ivan Gasparovic on air of the public-service television STV, in the Sunday political debate program O 5 Minut 12. “Even if not a systemic success, but for a certain time they were very operative,” remarked the president, adding that he was glad that something was done. Prime Minister Iveta Radicova reminded him that the previous government left for the new government a huge unemployment rate, two-thirds of people with monthly income lower than EUR 500 and incredible debts. “In every department that we got hold of, we took over with debts in every area: ineffective contracts, bad public procurements, bad management of public funds,” responded the prime minister. Moreover, the new government had to submit two state budgets. “One for the previous year, because it was not defined truthfully and a new one, which concerns the future of the Slovak Republic,” she stated.
This year, the area of trustworthiness, which includes the reform of the judiciary and reduction of corruption, will be reformed. The prime minister pointed out that it is very difficult to attract good, renowned, sturdy investors and support small and medium-sized businesses without trust. This will also positively affect creation of new jobs. Also, the burden of mandatory social and health insurance contributions will be reformed, as it currently halts formation of new jobs. “We want to achieve higher net incomes for employees on the one hand and reduce the burden of contributions for employers [on the other],” added Radicova. The third reform, which the government is launching, concerns education and qualifications. She explained that the biggest group of unemployed is among school graduates, as their qualification does not correspond with requirements of employers and firms, while schools do not offer education focusing on modern technologies. She admitted that the government would continue to support new investments as it has been previously, but under the condition that they bring added value and give jobs to people in the least developed regions.
President Gasparovic said with regard to economic measures of the current government that he never planned to veto the draft state budget law. He is glad that the law was endorsed in the proposed form, in spite of having some objections. He believes that increasing the VAT rate by one percentage point is not a problem, as it should not considerably affect the inflation. Nonetheless, he is afraid that measures in the energy sector will negatively affect citizens’ expenses. He is glad that the government pushed forward changes in social and parental contributions.
The president further said that he sees systemic measures in cooperation between the ruling coalition and the opposition. “Seeking new changes or partial reforms in the healthcare sector, taxes, contributions: that has no future, to adopt measures for a short time,” thinks the head of the state. The government has to realize that a social reconciliation means a success for it.
According to Speaker of Parliament Richard Sulik, common sense won when the coalition was deciding about economic measures. Sulik admitted that some measures will negatively affect citizens in certain areas, while for instance in the social sphere, the measures of the incumbent center-right government are more social than of the previous, center-left government. “We have corrected the system, patched up a lot of holes causing leakages. Yes, those people who until now have paid low taxes and contributions, or were able to jink inside the system, which has now been prevented, they will not be content,” stated the head of the Parliament, adding that those people paid low taxes on the expense of others.
SITA
