EC says risks exist for Slovakia’s 2013 budget consolidation target

By bne IntelliNews July 22, 2013

The European Commission has warned the Slovak government that there are still risks it might not meet its 2013 target of cutting the budget deficit below the EU’s 3%/GDP ceiling, SITA news agency reported, quoting the Commission’s latest report on public finances in eurozone members.

According to the Commission, the main risk to the fulfillment of the target is related to the fact that a significant portion of the budget consolidation measures was placed on the shoulders of self-governments, on which the state does not have a direct impact. The Commission’s worries stem mainly from the fact that past experience have shown that self- governments can spend more than they should, endangering the budget deficit target.

The Commission has also noted that Slovakia should focus on structural changes in public finances to be able to achieve its medium-term consolidation targets by 2017, adding that the central European country should avoid spending cuts that could undermine economic growth, but should improve the efficiency of public expenditures, instead.

Related Articles

RBI issues €650mn of AT1 hybrid securities

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, has issued €650mn of perpetual additional Tier 1 capital (AT1). ATI ... more

Visegrad insists EU funds must not be held hostage

EU funds should not be held hostage to politics, a senior Slovak minister insisted on June 27 as the European Commission debates placing conditions on cohesion funding. The idea of limiting funds ... more

VW agrees wage hike to end strike at Slovak plant

Volkswagen Slovakia will hand over a 14.1% pay rise to workers at its plant in Bratislava to end a strike, media reported on June 26. The industrial action, which launched on June 20 after months ... more

Dismiss