BRATISLAVA, March 28, (WEBNOVINY) – The tripartite has postponed talks about the national program of reforms tailored by the Finance Ministry until next month. Social partners agreed on Monday that they would discuss the document at a special session slated for April 18. “Based on the consensus reached by social partners we have agreed to shift this document to the next meeting, given the amount of the material and lack of time to go through it,” said Labor Minister Jozef Mihal after the meeting.
The National Association of Employers (RUZ) expressed support for the national program of reforms after Monday’s talks. In contrast, Trade Union Confederation (KOZ) Deputy President Vladimir Mojs presented comments on the material, explaining that unionists have a slightly different opinion regarding methods of consolidating public finances or handling unemployment. Representatives of trade unions insist that the burden represented by consolidation measures should not be borne exclusively by employees, but should be proportionally distributed on the shoulders of all groups. “We want the overall burden of consolidation to be transferred not only to employees and the lowest groups; we want to balance the division of the burden to all groups including employers, the business sector and the capital,” said Mojs.
Social partners devoted extensive attention to an analysis of the development of the local tax and fee burden on business entities. Though in the monitored period from 2009 to 2011, in 77 percent of municipalities no change in local taxes and fees was recorded and in 62 percent of them only one rate was changed, Deputy President of the Avocation of Employers (AZZZ) Milan Chupek businessmen shared his fear over the possible growth in the tax burden.
One of the priorities of the national program of reforms is management of public finances, for which the Finance Ministry has tailored new, tougher rules. The ministry sees reform aimed at firming budget responsibility as one of its priorities. “The considerable toughening of the fiscal framework may increase Slovakia’s credibility on international financial markets and thus facilitate smoother consolidation of public funds,” predicts the ministry. The reform of fiscal institutions includes six basic areas, and the ministry plans to put more emphasis on the net economic welfare of the state and wants to introduce a cap on the gross public debt and aggregate expenditure limits as well. Changes should also involve rules of self-government performance and total transparency of public finances, which should be supervised by a fiscal council.
SITA