Slovak Republic
In June 2006 early parliamentary elections were held in the Slovak Republic. The winner was the biggest opposition party, the SMER-SD (Social Democracy), which together with two other opposition parties have formed a new coalition government. The victory was based on a sharp criticism of the impacts of government reforms enacted since 2002 (in particular the establishment of a flat VAT of 19%) on living standards, especially those of low-income households. All the parties of former majority, which enacted these reforms, have been pushed into the opposition minority. So Slovakia has a government that has—for the first time since 1993—an ambition to implement social democratic policies during its four year term.
However, the new government has retained the flat tax despite its pre-election promises to raise taxes on high income households; and only the VAT for medications has been cut (from 19% to 10%). But they have halted the privatization of state property, restricted the growth of energy prices, cancelled charges for health service, and want to enact significant changes in the Labour Code (strengthening the position of unions and collective bargaining, raising the minimum wage, limiting overtime etc.). They have also announced their intention continue the policy of the previous government to meet the Maastricht criteria in order to adopt the euro by January 2009.
- To read a detailed labor market
analysis for the Slovak Republic, download one of the following:
Adobe Acrobat [.pdf] [size 132 kb]
Microsoft Word [.doc] [size 253 kb]
Source:
INFOSTAT
Institute of Informatics and Statistics
Dúbravská cesta 3
845 24 Bratislava 45
Slovak Republic
Phone +421 2 59 37 92 77
Fax +421 2 54 79 14 63
http://www.infostat.sk/
Posted April 12, 2007.
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