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Figel: Austerity Measures Need to Be Done Within First Year of Mandate
Monday 30 August 2010 Zoom in | Print page
Bratislava, August 30 (TASR) - The majority of unpopular measures to consolidate public finances needs to be done already in the first year of Prime Minister Iveta Radicova's Government, Christian Democratic Movement (KDH) Chairman Jan Figel said after the party session on Monday.
"It's necessary because the Slovak financial situation is already untenable. The later we try to consolidate the more painful and complicated it would get," said Figel, adding that "a good thrifty person doesn't live in debt but manages everything economically, and that should be the ambition of Slovakia as well."
As for expected unification and the rise in VAT, Figel confirmed that ongoing discussions are leading up to the unification of VAT. "However, the talks are not finished yet," he stressed. Figel maintains the view that if the lower tax rates are to be raised, a compensation is called for. "Compensation for the socially disadvantaged must be an important part of the package," he said, adding that the consolidation package needs to be just and show solidarity.
The issue of finding ways to increase state budget revenues along with potential austerity measures will be discussed at the Coalition Council's session, set for Tuesday (August 31) at 5 p.m.
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