Stage set for reforms in 2011

According to a report of the Financial Policy Institute (FPI) of the Ministry of Finance, Slovakia should continue to experience favourable development this year when it comes to structural reforms.

One key factor is the level of public support, which FPI analysts feel will increase positively this year. This opinion is based partially on a Eurobarometer survey from 2010 that claims 83% of the population feel that reforms are required. Apart from being a high figure in itself, it is also 5% higher than in 2009.

The institute also sees another pro-reform factor in the natural economic cycle following a recession, with the OECD saying that the best time for reform is two years later, i.e. in 2011. Other factors that act in favour of reforms include the fact that the government is in the early part of its term and so can afford to be more daring than just before a general election.

The institute also noted how the true benefits of reforms are not felt until several years later, though, which is why many governments avoid them. The consolidation of public finances this year is regarded as a negative factor in this respect, however, because it tends to slow down the reform process.

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