Economic analysts: Fico chose the worst option

A SMER-HZDS-SNS coalition was the worst possible decision for the development of Slovakia's economy, economic analysts are claiming.

Fico has repeatedly stated he respects EU rules on limiting the state deficit, but analysts remain cautious, the Pravda daily wrote.

"This coalition could cause the deficit to grow by as much as 5 percent," Ján Tóth, chief economist with ING Bank, said prior to yesterday's announcement.

Fico has already confirmed the new government will introduce a second reduced VAT rate, which should be "considerably lower" than the current 19 percent, but has not said how his party plans to replace that lost revenue.

Analysts also fear the new government will be less transparent, making its economic policies difficult to forecast.

Compiled by Martina Jurinová from press reports

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