Spectator on facebook

Spectator on facebook

Governance Institute says EU won't cover funds for social enterprises

Financial support reaching €26.56 million that has been provided to so-called social enterprises by the Slovak government using EU funds was unjustified, said board chairman of the Slovak Governance Institute (SGI) Miroslav Beblavý at a press conference on Thursday, November 26, the TASR newswire reported.

Financial support reaching €26.56 million that has been provided to so-called social enterprises by the Slovak government using EU funds was unjustified, said board chairman of the Slovak Governance Institute (SGI) Miroslav Beblavý at a press conference on Thursday, November 26, the TASR newswire reported.

According to Beblavý, these non-governmental organisations were subsidised at odds with European rules on state support. “As this assistance was provided unjustifiably, Brussels will never pay the money to Slovakia. If some of them have already been subsidised, Brussels will ask for a refund,” he told TASR.

The Labour, Social Affairs and the Family Ministry has provided money from the European Social Fund (ESF) to eight pilot social enterprises. According to Beblavý, the problem lies in the fact that seven of the eight social enterprises pursue business activities.

The EU has set strict rules for subsidised businesses that aren't being met at the moment. If the enterprises hadn't been carrying out business activities the requirements for subsidies would have been met. According to SGI, the only way to by-pass these rules is to ask for an exemption, which didn't happen in this case. SGI has already sent its findings to the Finance Ministry, the Labour Ministry and the European Commission (EC).

The EC's team of auditors is currently looking into the general system of checks and management of expenditures sourced from the European Social Fund (ESF), the spokesperson for EU Commissioner for Employment Chantal Hughes told TASR. TASR

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

Press freedom is bleeding across our borders

Critical media are always the first targets of populists and press freedom enemies.

I have met dozens of people possessed by Satan, exorcist claims

An exorcist can help a believer to escape their problems but not to solve them, psychiatrist Hunčík says.

Priest and exorcist Ľuboš Václavek consecrates the office of Erika Jurinová (OĽaNO).

End of investigative show a cause for concern

Media freedom watchdogs believe the scrapping of the only investigative show on public-service television is a threat to its independence.

Jaroslav Rezník

Slovakia is 26th on the Employment Flexibility Index

Higher work surcharges will push Slovakia down.