Budget proposal conflict in Slovakia could delay aid payments

The Slovak parliament on Monday postponed approval of a budget amendment which would add €3.4 billion to 2021 expenditures due to a split among government parties, threatening an end to support for businesses reeling from pandemic closures.

The proposed budget raise would see Slovakia’s 2021 deficit go up from 7,4% to 9,9%. Labour Minister Milan Krajniak warned that if the bill is not passed by next week, June payments would be delayed. 

The conflict sees old enemies clash in new positions, as former PM and new Finance Minister Igor Matovič battles with Economy Minister Richard Sulík. 

During their back-to-back press conferences on Wednesday, the fiscally conservative Sulík agreed with the extra budget for COVID-19 aid but questioned non-COVID related expenses included in the raise, such as railway debt. The finance minister proposed budget cuts that would lower the amount added to €1.6 billion and criticised the fast legislative process that did not allow for a proper discussion of the changes.

For his part, Matovič said that Sulík ignored meetings where the budget proposal was discussed, that no cuts were possible without “breaking promises” and that his party was purposely trying to “ruin another government”. The relationship between the two leading men appears to still be strained as the two continued to throw insults at each other. (Barbara Zmušková | EURACTIV.sk)