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The quality of business environment
in Slovakia continues to worsen in the 3rd quarter of
2009
In the third quarter of 2009 the Business
Environment in Slovakia has significantly worsened again.
Current value of Business Environment Index, that is
evaluated by Business Alliance of Slovakia from findings
of its own survey, is 101.4 points. This value represents
a decrease of 3,49% in comparison with the previous
period and it is the thirteenth consecutive decrease.
This perceived downgrade of business conditions is caused
not only by ongoing crisis but also by insufficient
government activities against crisis and business barriers.
Entrepreneurs assigned the biggest decrease
to the item "Law enforcement, judicial effectiveness".
This field has been one of most criticized over a long
period of time, in this quarter the rating decreased
by significant 10.27% to current value 32.7 points.
Entrepreneurs complain about permanent absence of clear
concept leading to improvement of the situation in judicature.
According to opinions of the entrepreneurs, the long-lasting
problems include particularly insufficient competency
and neutrality of judges, corruption, and uncertainty
caused by duration of judicial proceedings. Except poor
law enforcement, the entrepreneurs also criticize current
changes and development in judicial system.
The second biggest fall recorded the item
"Efficiency of state economy and access to the
state aid" with a decrease of 9.31% to current
value 42.0 points. This item is used to express efectivity
and fairness of the financial state aid to private business
enterprises and also effectiveness of state expenditures.
In spite negative impact of the crisis on tax revenue,
the government hasn't reevaluated expenses of the state
budget yet and has not implemented radical expenditure
cuts in all budget sections either. The result of this
inactivity together with ever biggest state deficit
planned for 2010 is a major increase of the state debt,
which leads not only to decline of the state credibility,
but also to the possibility of an increase of taxes.
Another big barrier to business in Slovakia
was the item "Acceptance of subject equality before
the law" that decreased by 8.62% to current value
47.8 points. This item shows how much has the enforcment
of the equal approach to all concerned subjects based
on Constitution change, whether in judicial proceedings
or by public procurement.
Chronical and still unsolved business
barriers recorded also very negative ratings. Besides
mentioned poor law enforcement entrepreneurs criticize
payroll taxes legislation, and low understandability
and steadiness of enactments. Another criticised negative
is the increase of corruption, to which partially contributes
lack of the interest of the government for careful investigation
of the non-transparent state orders.
Affected by crisis, entrepreneurs started
to have a big problems with the deterioration of the
financial discipline of business partners. Access to
financial resources is also more difficult. The items
that reflect the above mentioned areas started to decrease
slightly from the middle of previous year and recorded
major decrease from the beginning of the year 2009.
According to entrepreneurs, the most positive
item affecting the business environment in Slovakia
was "Stability and predictability of the EUR exchange
rate". This is related to the implementation of
Euro in Slovakia at the beginning of this year and currency
stability acquired with this step. Another benefit gained
from this measure is a better planning ability of revenues
in foreign trade. The second highest increase achieved
the item "Quality and accessibility of primary
inputs and labor force". The rating grew up as
a result of redundancy, which increased the supply of
free qualified workforce. The respondents also assigned
an increase to the item "Price stability".
Slight increase of this item is a result of very low
inflation.
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