Government austerity package under fire

The Slovak government’s announced austerity package is under fire and facing fierce criticism: More than 120,000 Slovaks have signed a petition against the austerity measures, which has now been presented to Richard Sulík, Speaker of the Slovak Parliament, in Bratislava .

Controversial debate across Slovakia over the planned austerity package

The austerity package proposed by the Slovak government is being hotly debated across Slovakia. Among other measures, it would increase the current beer tax in Slovakia. Much of the population and the opposition are against the increase. They are calling for the current beer tax to remain unchanged. If that is not possible, at the very least, smaller breweries in Slovakia should be given some relief.

The Slovak government aims to use the planned austerity package to raise domestic taxes from 19 to 20 percent. This would mean an average annual tax increase of 122 euros for households in Slovakia. However, trade unions in Slovakia expect taxes to rise even further and estimate the additional burden at 400 euros per year.

There are also differing opinions within the government about the planned tax increase: Some Christian Democrat MPs propose raising taxes by an additional percentage point beyond what the coalition partner has proposed.

The opposition in Slovakia rejects the austerity package measures and goes a step further: It is calling for a special tax on banks and is particularly outraged by a government announcement that the Slovak government plans to eliminate or reduce tax breaks for all companies that pay contributions to a pension plan for their employees.