New Member States will push EU-15 to implement welfare state reforms

Slovakia's economy minister, Pavol Rusko, has pushed forward liberal policies and social reforms since taking up his role in government in 2003. To boost Slovakia's economy, he has introduced cuts in "medical and social benefit systems" and "changed the tax rules to decrease direct and increase indirect taxes".

The minister, a former journalist who still has close links with Slovakia's main TV channel, considers that "reforms will also be necessary for current members of the EU". Despite the popularity of welfare spending, the liberal Deputy Prime Minister states that "it is impossible to increase social benefits and state spending without equal level of economic power". This might create a conflict as many EU members are determined to pursue a policy of job protection and high taxation, necessitated by burgeoning welfare costs.

Pavol Rusko believes that "Slovakia will need about 25-40 years to catch up with the economically strong EU members, such as Germany and France". To do so, he firmly believes "it is important to use every possibility to increase domestic production to the maximum". The Liberal leader is seeking to create "a pleasant economic environment with clear economic regulations and a liberalisation of utilities and concrete economic incentives which could be negotiated with each investor who wants to come or increase production in Slovakia".

For Mr Rusko, economic incentives are similar to EU structural funds as they help "reduce the disparities between regions and countries". The minister is convinced that with another 4-5 big investors in Slovakia, such as Peugeot-Citroen, Volkswagen, Hyundai, the Slovak economic development could be changed "unbelievably".

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, Deputy Prime Minister of the Slovak Republic, Minister of economy and Chairman of the Alliance of a New Citizen (ANO - Aliancia nového obcana).