Economy needs €1.8bn fiscal stimulus

The Slovak economy needs a €1.8bn fiscal stimulus, says Ján Tóth, head of the fiscal responsibility council RRZ. He says the Slovak economy is 2.5% below its potential and the state pandemic assistance to companies has only amounted to 3% of GDP to date (it was double that in the EU). The stimulus should be targeted at the service sector. Economy Minister Richard Sulík has already prepared a large compensation package helping firms hit by the pandemic, but OĽaNO has been refusing it. It argues that of all EU countries, Slovakia faces the highest risk to the long-term sustainability of its public finances. This limits the potential fiscal stimuli.

(trend.sk)