EU wants changes in Slovak state budget

The European Commission called on the government to take measures to bring the 2024 state budget in line with the EU Council recommendations. It expects the budget deficit to rise to 6.3% of GDP this year from last year’s 6.1%. The government's budget says the deficit will fall to 6% from 6.5%. The difference is due to the accounting of energy price subsidies from EU sources. The EC has a negative view of high rise in spending, mainly on energy subsidies; these come to 0.8% of GDP, although the EU sees no need for them at current prices. It also criticizes the reduction in second pension pillar contributions, which, while improving public finances in the short term, hurts sustainability of the pension system.

If the government fails to respond, the EU may put Slovakia in an excessive deficit procedure and force fiscal consolidation. It is possible that the government will wait until after the presidential election to take further action.

(RRZ, aktuality.sk, teraz.sk)