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Coalition Partners Agree on Government Manifesto

Bratislava, July 27 (TASR) - After almost eight hours, the leaders of the coalition parties (SDKU-DS, Freedom and Solidarity/SaS, the Christian Democratic Movement/KDH and Most-Hid) ended their talks on the Government Manifesto proposal on Tuesday morning.

According to Prime Minister Iveta Radicova, the partners reached agreement on all areas of the Manifesto. She pointed to changes in the document - some of them quite significant when compared to the working version - which will now have to be included in the final version. The coalition parliamentary caucuses can now express any reservations to the final version, which should be passed at a government session on Wednesday afternoon. "Each parliamentary caucus still has the chance to submit proposals in accordance with the programme theses and in line with the philosophy of the Government Manifesto," she explained.

The longest discussions concerned the health-care sector. Radicova told journalists that almost every sentence was discussed. Other intensely debated areas were the agendas of the Education, Interior and Transport Ministries. Sections concerning the duties of Deputy Premier for Minorities Rudolf Chmel (Most-Hid) also received a great deal of attention. Radicova noted that Economy Minister Juraj Miskov (SaS) had to completely rewrite his chapter. Major changes are also expected in the Transport Ministry's agenda.

The premier confirmed that her Cabinet will not agree to the harmonisation of VAT rates. Medicines, books and agricultural products sold directly to the public will keep their low VAT rates (10 percent for medicines and books and 6 percent for the agricultural products). At the same time, the levy ratios between the first and second (private) pillar of the pension system won't be amended. "On the contrary, we'll submit a law concerning the stabilisation of the second pillar," she said, adding that the age of retirement will remain at 62 years.

Major changes are also being made to the Labour Ministry's agenda. Radicova and Labour Minister Jozef Mihal (SaS) agreed at a meeting on Sunday that the levy system needs to undergo major reform to unify the bases calculated from so-called super-gross salaries. The changes won't concern health or unemployment insurance in the near future, however.

According to Radicova, the new Government isn't preparing to privatise strategic enterprises, although something needs to be done about the situation at Bratislava airport and at state-run Rail Company Cargo (ZSSK Cargo), with the Cabinet looking to foreign investors.

By 2014, Bratislava and Kosice should be connected with a high-quality road link, although this won't necessarily be all motorway. "It isn't realistic," said Radicova, adding that the financing of road infrastructure will come from a combination of EU funds, public-private partnership (PPP) projects and means from the second pension pillar.

As far as savings in public finances, much needed in order to lower the deficit, are concerned, Radicova said that ministry audits will have to be carried out first. "When we receive Parliament's vote of confidence, we'll immediately start working on a state budget and the savings, which are already being discussed," said the premier. The ministries have to submit their proposals by the end of August.

"Budget revenues should be increased partly by halting or scrapping overpriced public procurements, with anti-corruption measures and with the revival of economy, the creation of new jobs and increases in employment," added Radicova.

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