Slovakia's Rising Living Standards Stall as Tax Increases Hit Workers' Net Income

Slovak households achieved historically high net incomes last year, but economist Martin Šuster from the Budget Responsibility Council warns this progress has now stalled. Šuster, whose previous statements about Slovakia having the best living standards in its history have been frequently cited by Prime Minister Robert Fico and other coalition politicians, now says households will likely see no improvement this year. "Either we will stagnate, or we will go down," the economist stated, citing rising taxes and social contributions that are reducing workers' take-home pay. The warning comes as Slovakia faces economic headwinds that threaten to reverse recent gains in household prosperity that had marked a significant milestone in the country's post-communist development.