BRATISLAVA, September 5, (WEBNOVINY) — A law imposing limits on state debt will most probably also get support of strongest opposition party SMER-SD. As its Chairman Robert Fico informed this Monday, the party considers adopting such law necessary. The cap on state debt could be the same as the 60 percent of GDP imposed by the Maastricht criteria. Fico said their party could imagine adopting a law on fiscal responsibility as they fear increasing the debt, the pace of which is “brutal” and in the case of Iveta Radicova’s Cabinet, they are ready to discuss a bill on fiscal responsibility. “We in the SMER-SD party can simply imagine that a law would impose a cap that the country cannot exceed,” said Fico, adding that in SMER they identify themselves with the Maastricht criteria, which allow public debt to reach 60 percent of the country’s economic performance.
After discussing current euro zone issues with Finance Minister Ivan Miklos and Foreign Minister Mikulas Dzurinda in early August, Prime Minister Iveta Radicova informed that the cap on Slovak public debt could be set to 60 percent GDP or less. She also said that a framework agreement was reached by SMER-SD’s Robert Fico.
The bill on fiscal responsibility should also encompass other measures. Rules for fiscal behavior of municipalities and for general transparency of public finances, which is to be overseen by an independent fiscal council, should also change. More emphasis should be put on the state’s net wealth.
Robert Fico also told the media that his party plans to again submit a proposal on introducing the bank tax this October, together with proposing a higher gradation of the so-called millionaire tax. According to him, SMER-SD does not agree with the middle class or municipalities rescuing the budget deficit.
SITA