Government lives on another planet; Slovakia is investment-unattractive, says employers' union

Slovak entrepreneurs are voicing strong criticism against the government of Robert Fico, arguing that its fiscal policies, particularly tax increases, are stifling economic growth and making the country unattractive to investors. Despite multiple rounds of fiscal consolidation, the budget deficit remains a concern, exacerbated by measures implemented by Finance Minister Ladislav Kamenický that heavily rely on tax hikes. Jozef Špirko, vice-president of the Republican Union of Employers (RÚZ), expressed disappointment with the government's approach. He noted that while Prime Minister Fico had previously suggested no further tax increases were planned, a proposal from the coalition partner SNS to amend the local taxes law could lead to further increases. Špirko stated, "The ruling coalition preaches water and drinks wine." He also criticized the government's proposed pro-growth measures, describing them as a "small bureaucratic package" that might help individual firms but will not stimulate overall economic expansion. Špirko highlighted that the RÚZ had submitted over 150 proposed measures, but only a fraction made it into the government's draft legislation, with further hurdles in parliamentary approval. He believes that the current measures are not pro-growth but rather anti-bureaucratic, and that reducing taxes and social security contributions is essential for economic recovery. Špirko feels the government is out of touch with economic realities, stating, "It feels like the government lives on another planet." Furthermore, Špirko pointed to significant issues within the public sector, including overstaffing and the generous, often untargeted, social system. He noted that the average salary in the public sector is now 300 euros higher than in the private sector, which funds the state budget. This disparity, he argued, contributes to the deep deficit in the public sector due to the "squandering of public money."