aktuality.sk : NUE proposes some changes to cut the state expenditures
hnonline.sk: Less expenses, lower taxes. Employers introduced the plan to save 6.5 billion
startitup.sk : Employers presented their own consolidation package, They want to save 6.5 billion
e.dennikn.sk : Employers presented their own consolidation package, They want to save 6.5 billion
ruzsr.sk : NUE presented a plan to save 6.5 billion euros to the Ministry of Finance: Real consolidation is possible only by cutting expenses and not by further increasing taxes
May 28, 2025
Employers associated in the National Union of Employers (NUE) presented their own set of consolidation measures, which, according to the employer sector, can significantly contribute to the stabilization and long-term sustainability of public finances without a negative impact on the business environment or economic activity. NUE emphasizes that consolidation in the true sense of the word means reducing excessive public expenses, not further increasing the tax burden. According to employers, every new tax measure hinders economic growth, reduces net household income and suppresses the private sector.

Representatives of the business community presented proposals for specific and feasible measures at the Ministry of Finance that have the potential to significantly improve the sustainability of public finances and prevent excessive public sector indebtedness in the future. "The basic principle of the proposed measures is that they focus on reducing public sector spending and do not increase the tax burden on economic activity. Every tax increase has a negative impact on economic performance and net household income. It is necessary to draw a sharp line behind the previous increase and focus on systemic spending reduction," says Miroslav Kiralvarga, president of NUE. The employers also emphasize that consolidation in the true sense of the word is precisely the reduction of excessive spending. According to them, increasing taxes is a simple solution to mismanagement, which only leads to the expansion of the state at the expense of the private sector without considering the effective or ineffective activities of the public sector.

For this reason, the NUE prepared its own proposal for consolidation measures, which it addressed to the Prime Minister some time ago and presented in detail to representatives of the Ministry of Finance at the meeting. The Union proposes to implement consolidation measures in four large areas. The total amount that the state would save by implementing the measures proposed by the NUE is 6.5 billion euros. This is a combination of implementing measures in the areas of streamlining the operation of public administration, targeting state aid, labor and employment, and full implementation (primarily already approved by the government) of measures to revise the expenditures of individual government departments. The proposal includes, for example, a gradual reduction in employment in public administration by 15%, and also includes the centralization and digitalization of public procurement, the abolition of redundant offices and institutions, and the realization of energy expenditures and the sale of redundant state property. "Some of them require a longer time to implement, but according to the employers, it is necessary to begin their gradual and planned implementation," explains NUE Vice President, Jozef Spirko.

The area of ​​ensuring the targeting of social assistance is also being discussed in the media. In this context, employers associated with the NUE propose to keep the instruments such as old-age and disability pensions, maternity, sickness, accident and orphan benefits in force. In this area, instead of sweeping cuts, the NUE proposes to focus on introducing full targeting of the social system, where income, assets and basic expenses will be examined and the state will pay extra to cover the established basic expenses. "Currently, there are a number of disparate benefits and assistance systems and there is a lack of a comprehensive, unified and effective state system for recording applications and paying this assistance. The state basically does not know how much each family receives in individual contributions," explains Spirko. Their proposal assumes that as household income and assets grow, the amount of assistance from the state would gradually decrease, but only to such an extent that there would still be motivation to earn more. When participating in the labor market, the assistance will be significantly higher than when inactive. "However, basic benefits such as standard pensions or maternity benefits would not be affected by this system," assures the NUE vicepresident.

Another key area is also minimizing the unauthorized drawing of benefits through fictitious or unjustifiably prolonged sick leave. "This is a huge burden on the social system, which leads to significant financial losses. We propose to streamline the control of compliance with the treatment regimen, closer cooperation and exchange of data with employers and doctors, streamline control tools, as well as tighten the rules and sanctions for the abuse of health insurance benefits using examples of good practice from abroad," specifies Spirko. NUE also appeals to the government, in addition to savings, to focus its efforts on structural reforms aimed at improving the business environment and supporting economic growth. "While the current consolidation measures may contribute to filling the state budget in the short term, in the long term they dampen economic activity, which damages the economy and with it the sustainability of public finance consolidation. Therefore, in addition to the four areas mentioned, the government should also focus on structural measures supporting the business environment and economic growth and, through sustained faster GDP growth, help the economy grow out of debt," adds Marcel Klimek, executive director of the Slovak Banking Association and member of the NUE Presidium.

NUE remains ready to be an expert partner in implementing the necessary changes and believes that the government will no longer rely on the easier but more harmful path of tax increases for consolidation. All the more so when it is demonstrably clear that there are other, more sustainable and healthier ways. "The government must set a clear plan for the consolidation of public finances based on the courage to save where spending is unsustainable in the long term. Right now, it is necessary to show that public spending must be subject to the same principle of efficiency as in the private sector," concludes NUE President Miroslav Kiralvarga.