OLD-SLAVONIC EMPIRE - INFOMA

4
Dear Readers,
ADRESS BY THE MINISTER OF ECONOMY
PRÍHOVOR MINISTRA HOSPODÁRSTVA
Slovakia is an open and export-oriented
country. Almost 90 per cent of our GDP is made
up of export. This openness, which was an
advantage at times of prosperity of the region,
has manifested itself negatively in the period
of the global crisis. Since Slovakia is highly
dependent on the development of the external
environment, we are particular in contributing
to the renewal of growth in the entire region by
means of appropriate measures. The measures
approved by the Government of the Slovak
Republic, aimed at mitigating the consequences
of the global crisis, therefore have an impact on
the economies of other countries, too. We make
endeavours to compensate the deficit of private
investments and consumption by means of
a broader private investments programme
focused mainly on infrastructure construction
and renewal. We are introducing programmes
for the promotion of industry and reduction of
energy intensity.
A favourable business environment is the
prerequisite for long-term competition and
growth of every market economy. The decisions
and actions taken by the public administration
in the past years have largely contributed to
improving the business environment in the
Slovak Republic. In this regard, our country has
even become an example to be followed for
other countries and is one of those where most
of the reforms have been made. Yet, there are
always many things to improve. Businessmen in
Slovakia still complain about the administrative
obstacles. Slovakia has recently joined the
activities of the European Union, which is
trying to reduce the administrative burdens
in business by 25 per cent by the year 2012
by means of an action programme and with
the help of the EU Member States. In October
2007, the Government of the Slovak Republic
approved the “Action Programme for Reducing
Administrative Burdens in Slovakia 2007-2012”,
by which it entered in this EU commitment. The
project is divided into three stages. Currently,
we are entering the last stage. We prepared
the instruments and defined the conditions for
measuring the administrative burdens in Slovakia
at the first stage. Within the second stage, we
quantified the administrative burdens in the
Slovak Republic. The implementation team, in
cooperation with the representatives of other
sectors, evaluated the 48 most relevant legal
regulations. They mainly focused on commercial
and civil law, the accounting of bankruptcy and
restructuring, market regulation and investment
incentives regulation. We also examined the
legal regulations concerning taxes, customs,
fees and insurance payments, as well as labour,
employment, intellectual property and the
environment. This selection was based on the
recommendations of the state administration
bodies, and the representatives of the business
sectors were invited, too. Their opinions and
suggestions became the basis of the whole
project. It has several fundamental objectives.
The first one is to define the actual cost rate and
administrative burdens of entrepreneurs, which
relates to the fulfilment of reporting obligations
arising from the Slovak laws. The next step
was the adoption of appropriate measures to
decrease the costs for entrepreneurs in this field
and reduce their “paperwork” to an acceptable
level. Slovakia is now entering the third stage.
One of the first measures is that the entities and
persons submitting draft bills will be obligated
to assess the impacts of the bill on various fields
and on the business environment in accordance
with the single methodology approved. This
will help to eliminate any actions resulting in
increased administrative burden and costs for
the business already at the stage of drafting
bills.
As for measures focused on mitigating the
impacts of the crisis, the non-taxable part of the
personal income tax base increased in Slovakia.
The other measures include increasing of the
employment bonus, change in the market
entry price of tangible and intangible assets
in relation to income taxes, reducing of the
period for returning excessive VAT payments, as
well as other positive changes in the business
environment. As for entrepreneurs in need of
access to available resources, the increase in the
registered capital of Eximbanka (Export-Import
Bank) and Slovenská záručná a rozvojová banka
(Slovak Guarantee and Development Bank) is
important.
On the proposal of the Ministry of Economy,
the Government of the Slovak Republic
approved transparent and effective rules for
granting state aid, which are favourable to
investors. These strictly respect the rules and
norms of the European Union. In response to
the crisis, these conditions were operatively
adjusted under the “package of anti-crisis
measures”, prepared and adopted by general
consensus by the Economic Crisis Council.
We are implementing measures based on
the principles of the single market, economic
competition, and the rights and needs of
citizens. In the framework of its anti-crisis
policy, the government adopted 62 measures
aimed at raising the aggregate demand and
hence reviving consumption and production.
These measures also include faster structural
funds drawing, and implementation of large
investment plans, including PPP projects. We
are introducing programmes for the promotion