English News Summary (June 24 - June 30) Weekly update on Slovak economy and business

JUNE 30 The construction company, Inzinierske stavby (IS), a.s., Kosice is to build a new road for freight transport at the border crossing to Ukraine in Vysne Nemecke. The reconstructed road will have two lanes in both directions and will be connected to a new road in Ukraine leading to Uzhgorod.JUNE 24



Slovakia’s gross foreign debt was 49.38 bil. USD at the end of March stated the National Bank of Slovakia.



From July the health insurance company, Vљeobecnб zdravotnб poisќovтa, will decrease the volume of funds for 24 hospitals.



In 2007 the trade balance deficit between the European Union (EU) and Russia was 54 bil. EUR. This information was published by the EU statistical office, Eurostat, in relation to the 21st EU – Russia summit.



Skanska BS, a.s. Prievidza opened a new plant producing asphalt mixture in Љelpice close to Trnava with an annual capacity of 150,000 tons. The total investment amounted to 150 mil. Sk (4.96 mil. EUR).



JUNE 25



The Ministry of Finance increased its inflation outlook for this and the following years. According to the latest review of macroeconomic prognoses by the Financial Policy Institute at the Ministry of Finance inflation calculated using local methodology will reach 4.3% on average this year. This means consumer prices will grow by 1 percentage point more than the Institute expected in January. The Institute also increased its expectations regarding average inflation in 2009 to 3.5% and adjusted its expectation in regards to inflation over the next two years, i.e. it is expected to grow by 0.3% a year to 3.2% and then 3.5%.



The cabinet approved a draft amendment to the Act on the competence of public bodies regarding the registration of varieties of cultivated plants and the marketing of plants for cultivations as prepared by the Ministry of Agriculture. The objective of this amendment was to make The Central Supervisory and Testing Institute for Agriculture obliged to maintain and regularly review the register of fruit and hop farms and introduce an obligation for the users of the farms to update the relevant data regularly. It is expected to enter into force on November 1, 2008.



Construction work on the biggest shopping centre in Trenинn country has started. Centrum Laugaricio will be located on the outskirts of Trenинn, will provide a shopping area of 67,000 m2 and will employ 1 200 people. Construction costs are expected to be 2.8 bil. Sk (92.67 mil. EUR). The construction will be undertaken by investment company, Trenинn Retail Park, a.s., backed by the real estate fund - Czech and Slovak Property Fund B.V.



Prime Minister, Robert Fico requested the Minister of Labour, Social Affairs and Family, Viera Tomanovб, to prepare a proposal for the recall of the general director of the social insurance company, Sociбlna poisќovna (SP), Ivan Bernбtek as of August 1.



JUNE 26



The tax burden in 27 EU member states increased in 2006 to reach 39.9% whereas in 2005 this figure was 39.3%. The tax burden figures representing the share of taxes and levies of gross domestic product were published by the EU statistical office, Eurostat. In the 15-member euro-zone it reached 40.5% and in Slovakia 29.3%.



During a meeting with the Austrian Minister of Economy and Labour, Martin Bartenstein, the Minister of Economy, јubomнr Jahnбtek, addressed the issue of the potential interconnection of the electricity power transmission networks of the two countries.



The developer, CTP Invest, announced a plan to build an industrial park in Martin at a total cost of 210 mil EUR, (6.3 bil. Sk). The new park to be called, CTPark, will have an area of 39 ha and when completed will provide work for 1000 to 1500 people. The first phase of construction work is scheduled to start this September and completion is planned for 2012. The park will focus on various type of production and partially on logistics. Once completed it will offer 97,000 ha of production and other space for rental. The first buildings should be available in mid-2009. The project has three phases, the first of which will be built on a 13 ha plot.



The European Commission has begun proceedings against Slovakia regarding non-observance of the EU regulation on ship source-pollution and on the introduction of sanctions for pollution offences.



JUNE 27



In Slovakia the Economic Sentiment Indicator fell in June by 0.6 percentage points compared to May to 96.9 percentage points.