Slovak Government Admits Economic Policy Mistakes as Growth Stalls Near Zero

Slovakia's government has acknowledged policy errors after three waves of fiscal consolidation measures led by Finance Minister Ladislav Kamenický resulted in economic growth stalling near zero percent. The ruling coalition, led by the social-democratic Smer-SD party, had previously denied problems with their economic approach but now admits the state can no longer extract more resources from businesses and citizens through additional fiscal measures. The consolidation policies, designed to reduce the budget deficit, appear to have severely dampened economic activity and are forcing the government to urgently develop new strategies to revive the country's economic engine.