BRATISLAVA, February 8, (WEBNOVINY) – Business environment in Slovakia continues to deteriorate, according to entrepreneurs clustered in the Business Alliance of Slovakia (PAS). Based on results of its latest survey, the business environment index fell 2.4 percent in quarterly terms to 87 points in the last quarter of 2011. This is the worst level since the alliance started surveying quality of business environment back in 2001.
The deterioration in the quality of the business environment is a result of the collapse of the government and related halt of adopting reform laws. Entrepreneurs are growing more cautious as a result of low ability to predict development on the local political scene as well as European markets.
The item of functionality of the political system in the state reported the most significant worsening in the fourth quarter of 2011. Its rating fell almost ten percent to 34.3 points. The decline is attributable to the fall of Iveta Radicova’s Cabinet in October 2011 and wide restriction of ministries’ possibilities to enforce prepared reforms. Entrepreneurs feel uncertain about future direction of economic policies after the March parliamentary elections.
The second worst developing item was effectiveness of the state’s economic performance and access to state support. The rating of the item fell 5.7 percent q/q to 27.6 percent. The third biggest drop was reported in law enforceability and functionality of courts, which sank 5.6 percent to 17.7 points.
Entrepreneurs opine that employment-related legislation improved the most, though only by a slight 0.8 percent to 69.8 points, in particular thanks to the amendment to the Labor Code.
Respondents first evaluated changes in the business environment for the third quarter of 2001, while the index’s referential level was 100 points. PAS clusters businesses with total annual sales of EUR 16.93 billion and employing some 64,000 people.
SITA
