Slovakia’s new government aims to cut a soaring deficit by targeting a higher share of banks’ profits in its 2024 budget. Prime Minister Robert Fico supports the re-introduction of a special bank tax, which was scrapped in 2020 under a former leftist government led by Fico before his resignation in 2018.
„We are planning for record bank profits and we want overall taxation of banks to be significantly higher in 2024 than what was before,” said Fico.
The new three-party government coalition must bring down a deficit expected to be the highest in the euro zone. The government is planning for record bank profits and a „small miracle” to consolidate, stabilise finances, and maintain social standards. Slovakia’s deficit is forecast to rise to up to 7% of GDP in 2023, strained by increased social benefits and spending to ease high energy prices. The new budget, expected to be ready by the end of November, will include measures like an extra pension payment and mortgage loan subsidies.
