The European Commission seems to have a problem with building state-supported rental flats in Slovakia according to the current plan. Last week, Prime Minister Robert Fico (Smer) admitted so for the first time, reports daily Sme.
"We've encountered a number of irregularities, but especially the fundamental problem whether the inclusion of social rental housing in the 5-percent rate is in accordance with European legislation," he said, referring to the reduced VAT which was supposed to lure in investors. He also said that the EC wants this to be changed. The PM's statement was later corrected and negotiations are supposed to be still going on.
However, neither the PM, nor relevant authorities, nor the EC want to specify what is the problem.
