Slovak Prime Minister Robert Fico is facing mounting dissent within his fragile governing coalition over a deeply unpopular financial transaction tax, refusing demands to scrap the measure, according to Euractiv.
At a tense press conference on Sunday, Fico declared the 0.4-0.8% levy on bank transactions “currently non-repealable,” challenging coalition partners to identify alternative revenue streams if they insist on changes.
The tax, introduced in April to curb Slovakia’s budget deficit, sparked outrage among businesses and self-employed workers, with social media flooded with screenshots showing unexpected deductions from company accounts.
Fico’s hardline stance has exposed rifts in his four-party alliance. The SNS party, the most vocal critic, submitted legislation last week to exempt small businesses with turnover under €100,000. While SNS leader Andrej Danko admitted he would prefer abolishing the tax entirely, he stopped short of threatening to collapse the government, noting Fico had left room for “technical adjustments.”
Pressure is also building from Hlas-SD, the coalition’s second-largest party, whose leader Matúš Šutaj Eštok demanded urgent talks on modifying the tax. Parliamentary speaker Richard Raši (Hlas-SD) called for a Treasury analysis of the policy’s projected €700 million yield, a move interpreted as laying groundwork for amendments.
The dispute revives tensions in Fico’s unstable alliance, which nearly unravelled in March amid infighting over ministerial appointments. The PM acknowledged “certain nervousness” about the coalition’s durability, though a recent reshuffle temporarily restored its parliamentary majority.
While the tax aligns with his Smer party’s deficit-reduction agenda, its rollout has handed ammunition to opponents.
