Bratislava – Slovakia, alongside Austria, is experiencing the fastest accumulation of debt in the European Union (EU). In the first quarter of this year, the public debt of Slovakia rose by 3.5% of gross domestic product (GDP), equating to over 5 billion euros compared to the last quarter of the previous year. Despite Finance Minister Ladislav Kamenický (Smer-SD) indicating that consolidation efforts may curb the nation’s debt, the opposition KDH raised concerns that the debt trend is likely to persist.
The party highlighted that the government’s initiative to increase value-added tax (VAT) rates aimed to generate an additional three-quarters of a billion euros this year, but projections suggest only a third of that may be achieved. “It is evident that the government struggles to collect taxes effectively. We have pointed this out since Robert Fico’s administration began, particularly after the government introduced an inadequate consolidation package last September,” KDH stated.
This situation, according to KDH, necessitates further consolidation measures that will ultimately impact the citizens. The Council for Budget Responsibility (RRZ) estimates these measures to amount to 2 billion euros next year, with similar actions expected to continue until the end of the government’s term.
“Minister Kamenický, when will you acknowledge your failures and outline corrective measures? You promised proposals by spring; now we are in mid-summer with no updates. If the current approach continues, Slovakia’s gross debt could surpass 100 billion euros for the first time in 2027, as projected by the RRZ,” stated KDH economic expert and National Council MP Jozef Hajko. He warned that this trajectory leads to a “clear path to bankruptcy,” which would have serious implications for residents and their living standards.
Consequently, KDH urges the government to implement cost-saving measures and avoid unnecessary expenditures.
“We also expect the government to enhance tax collection efforts and, importantly, to adopt measures that will promote investment and economic activity in Slovakia, as KDH proposed a year ago,” the party added.
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