Slovakia Plans €2.7b in Deficit Cuts to Avert Rating Downgrades

Slovakia announced a €2.7 billion ($3.2 billion) package of spending cuts and tax increases for 2026 to avert further rating downgrades.

Finance Minister Ladislav Kamenicky said there will be rises in income tax for higher earners, the value-added tax rate for some foods, gambling levies and health and social insurance contributions next year to meet the deficit-cutting goal.

The country will also merge some state offices and reduce spending at ministries, the minister told reporters on Tuesday. Overall, these measures aim to narrow public finance gap to about 4.2% of gross domestic product from 5.1% projected for this year.

“First, ...