The current financial crisis is definitely not easy. Their consequencies will be most probably visible in the loss of jobs and smaller growth in the European Union countries. Therefore we need today much more than before the courage to do changes in order to support the growth and to encourage the creation of new jobs.

There is a call for solutions also from the highest institutions: „European Council emphasizes that continued structural reform is even more importan than ever, to help restore growth and improve employment in Europe“ (16th October, 2008). I do believe we should focus on following priorities: Development, Activities, Stability and Trend. The Development can be supported by lower direct taxes, new Activities by wise support for SME’s, Stability by focus on middle class and more efficient services for citizens, and Trend by not producing bad debts. I am persuaded that crisis, which was caused by bad debts, can not be solved by additional ones.

The growth is always supported by lower taxation of work. We shouldn’t be afraid of going down with direct taxation. There is always and everywhere the discussion about tax turnover, but we know from the history and from many examples that lower direct taxes lead sooner or later to the higher tax revenue, and, what is even more important, it boosts development and new job opportunities.  I don’t call for lower consumption taxes. Such decision is politically very tempting, but it would lead only to lower tax revenue and not to lower prices for consumer. Dealing with tax systems there is also many opportunities for improvement in terms of simplification. More simple systems can save a lot of time and money for all entrepreneurs.

In current situation we shouldn’t be even afraid of tax vacations for the brand new small businesses. Particularly for people who are at present fired, it can be a great opportunity to go for new challenges.

I see the current situation also proves the idea of common european currency. Independent currencies immediately depreciated more and uncomparable to euro. Euro clearly shows its contribution to the stability in Europe.

Public services is the next area for improvement. If we can save funds from more efficient procurement or more efficient organization structure, it’s in most cases the significant source for savings in public funds. The responsible management of public finance is now crucial. We should be very careful in spendings and we should try to not produce new debts.

There  is a lot of ideas how to help to solve the current situation. I am definitely not a believer that crisis can be solved by special funds. It can help only to some people and only for short time. Additionaly funds are created by all tax payers and then distributed only to some. I don’t think it’s fair socially and economically. I do believe we should help to people, who are active and who can create jobs by themselves. In my view it’s fair, it restores the growth and it’s long term solution.

Ivan Štefanec, MP, Slovak National Parliamen