Reforms affecting the state budget have been announced by the
Minister for National Economy.
The reforms include changes to the tax and social security
systems.
Since the Government was elected in May 2010, business leaders
and economists have called for changes to the income and expenses
side of the state budget. However, the proposed changes involve
fewer than expected cost-reducing items and are being funded to a
considerable extent by additional pension receipts flowing into the
state budget following a recent change in the law.
This means there is no reduction in the special levy currently
payable by banks and other financial institutions. This was
originally introduced for a three-year period in 2010 as a
temporary measure to mitigate the financial consequences of the
economic crisis. Its rates (which are the highest by comparison
with the rest of Europe) will now not be reduced as planned.
