Slovakian Prime Minister tries to woo voters with anti-austerity package

Slovakia's Prime Minister announced an anti-austerity package Saturday aimed at consolidating his party's support after the leftists suffered a blow in recent presidential elections. "After years of austerity, let me present a package of positive financial, economic and social measures that we have prepared based on a successful fiscal consolidation and better tax collection," Robert Fico told journalists at his party's national convention.
"People won't vote for us because we succeeded at fiscal consolidation, they will vote for us if they can feel the impact of the measures on their lives," he said. The package, announced two years ahead of the next general election, is worth 250-million euros ($340 million) a year, and includes provision for an increase in the minimum wage, higher pensions and lower tax levies for low earners. It also features plans for cheaper natural gas for households as well as free train tickets for students and pensioners.
The proposals will be voted on by parliament, but since Fico has a ruling majority, the package is expected to be passed. Finance Minister Peter Kazimir, one of Fico's close allies, said the measures will not interfere with the government's goal to further cut the public finance gap from last year's 2.8 per cent of gross domestic product (GDP).
Analysts said the package was a bid to consolidate support for Fico's leftist party, the Smer-Social Democrats, who suffered a blow in March when Fico lost the presidential election against political newcomer Andrej Kiska. The Smer-Social Democrats won the 2012 general election by a landslide, enabling Fico to form a one-party government backed by a strong independent majority in the parliament.
But the latest opinion polls have seen party support fall from 44 per cent at the time of the 2012 election to 32 per cent, clouding the future of a premier who previously enjoyed iron-clad popularity as he gears up for the 2016 general election. At the conference in Bratislava on Saturday, Fico also announced an upcoming government reshuffle, but did not specify which ministers will go. Driven by exports of cars and electronics to the EU, eurozone member Slovakia's economy is expected to expand by 2.4 per cent this year after growing 0.9 per cent in 2013.