Despite a rising chorus of dissent from within his own ranks, Slovak Prime Minister Robert Fico refuses to budge on the country’s newly minted financial transaction tax.
At a press conference on Sunday, Fico made it crystal clear: the tax is “non-repealable” for now, firmly reminding his coalition partners that they had all backed it in parliament. Throwing down the gauntlet, he challenged the junior coalition party, SNS, to suggest where else the government could scrape up the missing revenue if they want the tax changed. At best, Fico said, he’s open to tweaking the “technical issues” tied to the new levy — but scrapping it entirely? Not on his watch.
Rolled out in April as part of an effort to plug the gaping hole in public finances, the Financial Transaction Tax slaps a 0.4% fee on certain transactions by financial institutions and doubles that to 0.8% for cash withdrawals. Businesses and the self-employed were hit hardest, and social media quickly lit up with screenshots from angry entrepreneurs showcasing just how much it’s costing them.
The fallout has only fueled fresh tension inside Fico’s fragile coalition. SNS, the most vocal critic, filed a bill last week to exempt sole traders and businesses pulling in less than €100,000 a year. SNS leader Andrej Danko, speaking on Sunday, said he’d rather see the tax scrapped altogether — though he stopped short of threatening to blow up the coalition. After all, Danko noted, Fico hadn’t slammed the door completely shut on possible amendments.
Meanwhile, calls to rework the tax are gaining steam in Hlas-SD (NI), the coalition’s second-biggest partner. Hlas-SD leader Matúš Šutaj Eštok urged open talks about how best to modify the tax, with parliamentary speaker Richard Raši joining the fray. Raši called on the finance minister to deliver a full report on the projected €700 million windfall from the tax and to explore potential changes.
At Sunday’s briefing, Fico also admitted to “a certain nervousness” lingering after the coalition’s latest brush with collapse. Until March, internal squabbles had the government teetering without a stable majority, drawing public flak from within its own walls. For now, the storm has been calmed — ministries handed out to rebellious MPs have shored up Fico’s support in parliament — but whether that peace will hold remains an open question.
