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Slovakia faces rising debt and fiscal stability warnings

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2026-10-21 13:22 UTC → 2026-11-08 12:03 UTC · added ~~removed~~

Slovakia’s fiscal outlook remains under intense scrutiny as projections suggest public debt could reach approximately 118 billion euros by 2029, or 71.8% of GDP. While previous estimates from the Supreme Audit Office (NKÚ) focused on a 2026 debt level of 92 billion euros, recent warnings from the Republic Employers' Union (RÚZ) and the Council for Budget Responsibility (RRZ) highlight a failure to stabilize finances through current budget proposals. The RRZ has issued stark warnings, comparing Slovakia’s rising debt and high spending to the conditions preceding the Greek debt crisis. The government’s proposed 2027 budget anticipates a deficit of 4.94% of GDP (roughly 7.4 billion euros), an increase from the 4.4% deficit estimated for 2026. Finance Minister Ladislav Kamenický has defended the budget as a necessary tool to maintain social benefits and prevent even higher debt levels by 2040. However, the RRZ maintains that the proposal fails to halt the increasing debt trajectory, suggesting that additional measures totaling roughly 3.5 billion euros may be required to stabilize the fiscal position. Legal and political challenges have intensified. Branislav Gröhling, leader of the SaS party, has submitted a challenge to the Constitutional Court regarding the approved 2027 state budget, characterizing it as “unconstitutional.” Meanwhile, the Slovak Chamber of Commerce and Industry (SOPK) has criticized the 2027–2029 public administration budget, suggesting it exhibits characteristics of “pre-election spending” driven by the upcoming 2027 elections. ~~SOPK warned that social benefits are being funded through increased national debt rather than~~ Newer projections indicate public ~~revenue and criticized~~ debt may reach nearly 100 billion euros by the ~~lack~~ end of ~~consultation with the business sector during the preparation process.~~ 2027, representing approximately 66.3% of GDP. Debt servicing costs are expected to hit 2.44 billion euros in 2027. To address these challenges, some economists have proposed a wave of privatization of state-owned enterprises to reduce national debt.

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