POLITICAL PARTIES AND SUPPORT OF BUSINESS IN SLOVAKIA IN 2016 61.Alexander Čemez
Abstract
The given contribution deals with the relationship of politics and business. Concretely, it deals with programs of political parties, which entered into the National Council of Slovak republic in 2016. These political parties are: Smer-sociálna demokracia, Sloboda a Solidarita, Obyčajní ľudia a nezávislé osobnosti, Sme rodina, Most-Híd, ĽS Naše Slovensko and Sieť. We analyze election programs of these political parties in the issue of support of business. Concretely, we focus on four areas: administrative load, restructuring, investment aid, taxes and levies. Among methods, which we will use in our contribution, belongs the study of sources, analysis and comparison. To used materials belong election programs of political parties.
Key words: business, political parties, election programs
JEL Code: Z000, O200
62.Introduction
In the given contribution, we deal with the relationship between business and politics. We deal with election programs of political parties, which entered into the National Council of Slovak republic in 2016. By this, we mean these political subjects: Smer-sociálna demokracia, Sloboda a Solidarita, Obyčajní ľudia a nezávislé osobnosti, Sme rodina, Most-Híd, ĽS Naše Slovensko and Sieť. In programs of political parties, we focus on the issue of support of business. In this regard, we deal mainly with four areas: administrative load, restructuring, investment aid, taxes and levies. Methods, which were chosen for this contribution, are the study of sources, analysis and comparison. To used materials, we can include election programs of political parties.
63.1 Theoretical part
It is possible to start from the basic precondition that right-wing political parties in general incline more to entrepreneurs and entrepreneur environment, in comparison with left-wing political parties. It is given by the fact that socialistic parties are oriented mainly on lower social classes (Bočáková, 2015) and put their focus on solidarity. They perceive the human as the social being and they see the world in move, try to achieve the change, even significant change. They see the role of the state mainly in economical allocation of resources, in social sphere, in support of education system, culture and health care, or in support of values, which are not economically attractive, but they give to life some kind of multidimensional extent. Right-wing in contrast puts the focus on individuality, private ownership and interventions into the market economy on as low level as possible. Right-wing also stands for lower taxes and minimizes economical resources allocation. It considers as inevitable and useful to have large social differences; it emphasizes the role of social elites. It addresses mainly middle and higher classes. (Kol., 2003) Differences between right-wing and left-wing voter are shown also in different lifestyles, while the lifestyle is not possible to measure in simple way. (Polonský, 2015) To this adapts also the communication of politicians, because they are aware, how important the communication with public is. In this way, words are tools, with which politicians work. Words create the world. (Žúborová, 2015)
In conditions of Slovak republic, it is moreover possible to divide the right-wing into two parts, which are basically able to agree on economical questions, but the difference is in the issue of human rights:
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Conservative right-wing – stands for the traditional values, as for example family, nation, national state, homeland,
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Liberal right-wing – stands for rights of marginalized groups.
Political parties, which entered into the National Council of Slovak republic in 2016, are possible to be divided from the ideological point of view in following way:
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Left-wing – Smer-sociálna demokracia,
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Right-wing – Sloboda a Solidarita,
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Central – Sieť,
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Minority – Most-Híd,
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Extreme right-wing – ĽS Naše Slovensko,
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National – SNS,
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New forms – Obyčajní ľudia a nezávislé osobnosti, Sme rodina.
From mentioned facts arises that from the ideological point of view, currently, there is very varied spectrum of political subjects in the parliament. Results of elections showed that the winner was Smer-sociálna demokracia, but with lower values, as it expected, while its estimations for formation of coalition of two or three political subjects was not fulfilled. For achieving the majority in the National Council of Slovak republic, it needed to form the coalition of four political subjects, which now consists besides Smer-SD also of SNS, Most-Híd and Sieť. Interesting is the fact that without regards on the ideology, almost all political subjects have agreed on negative approach to the issue of opening our state for immigrants, while the migration is understood as moving of people from their homelands. (Slovák, 2015) Along migration, there are also other problems and challenges, which are needed to be faced, for example aging of population (Kubíčková, 2015) or regional differences. (Adamkovičová, 2013)
The government of single party Smer-SD from 2012 to 2016 was not very favorable to entrepreneurs. Connection of four political subjects requires compromises, while three remaining political parties (SNS, Most-Híd and Sieť) had in their programs also suggestions, which were directed towards the improvement of business environment in Slovakia.
Results of elections into the National Council of Slovak republic in 2016 brought several interesting facts. On one side, Smer-SD achieved weaker election victory than four years ago which is natural for the governing party. On the other hand, into the parliament entered more political subjects, which are generally marked as non-standard. It is mainly the extreme right-wing party ĽS Naše Slovensko and the political movement Sme rodina. The cause is clearly the disillusion and overall disappointment and apathy of politics after 1989. Extremism became the everyday part of life in the society. (Mihálik, 2015)
Tab. 1 – Results of the parliamentary elections in 2016
political party
|
amount of voters in %
|
amount of mandates
|
Smer-SD
|
28,3
|
49
|
SaS
|
12,1
|
21
|
OĽaNO-NOVA
|
11
|
19
|
SNS
|
8,6
|
15
|
ĽS Naše Slovensko
|
8
|
14
|
SME RODINA - Boris Kollár
|
6,6
|
11
|
MOST-HÍD
|
6,5
|
11
|
SIEŤ
|
5,6
|
10
|
Source: Statistical office of the Slovak Republic, 2016
Paradox is that although the governmental coalition has not been officially formed yet, some of its political parties begin to collapse. For preserving of integrity of the given political party are very important good managerial and leader experience. (Mura, Horváth, 2015)
Political parties many times talk about the elimination of administrative load for entrepreneurs. Most-Híd stands for the cancellation of some laws and rules, concretely cancellation of occupational health service at least for small companies, Act on inappropriate conditions in business relationships, and Act on acquiring the ownership of agricultural land. (Volebný program Most-Híd, 2016) Sieť party wants to cancel tax licenses for business companies, limit the obligatory health service only on risk works, and to cancel gastro-coupons and re-schooling of drivers. (Volebný program Sieť, 2016) In the case of SaS party, the program in the question of decreasing the level of administrative load is more detailed and contains also concrete suggestions. We can mention for example: we will cancel the obligation to send to the given office the announcement about the selling and operation hours; we will decrease the number of bound small-businesses; we will move more craftsman and bound small businesses into the category of free small businesses; we will cancel the obligation to register free small businesses at the Trade Office; we will decrease the amount of minimal basic equity of limited company to 1 Euro; we will speed up the process of liquidation of companies and their deleting from the business register. (Volebný program SaS, 2016)
From introduced facts arises that with the issue of decreasing of bureaucratic load for entrepreneurs dealt three political subjects (Most-Híd, Sieť, SaS). Two of them (Most-Híd and Sieť) dealt with this problem only partially from the point of view of partial solutions. Most complexly elaborated was this issue in the case of SaS, which proposed several solutions, which also contain many concrete suggestions.
Another problem, which is related to the business environment, is restructuring. Most-Híd proposes that companies should temporarily not be able to apply for further orders within the public providing, until they will pay to their contractors from previous public orders. So-called mailbox companies will not be able to apply for public orders; these will be opened only for companies with transparent ownership structure. During the restructuring, also unsecured smaller creditors will be able to claim refund of debts minimally of 50%, within the period of maximally two years. (Volebný program Most-Híd, 2016) Sieť wants to avoid repeating of fraudulent restructurings and misuse of bankruptcies. In this way will be eliminated the possibility of debtor to nominate the restructuring administrator and mailbox companies will be automatically considered as persons related to the debtor. (Volebný program Sieť, 2016) SNS, in the area of restructuring and bankruptcies, wants to enforce the condition of minimally 60% satisfaction of creditors within the period of maximally 5 years. (Volebný program SNS, 2016) Farthest goes again SaS, which offers the complex of solutions of restructuring issue: we will introduce the condition for restructuring of minimally 50% satisfaction of creditors, during maximally 4 years; we will enable to company sub-contractors within the restructuring, if they are not paid, without any sanctions or fees, immediately to withdraw and terminate all contractual relationships or to suspend works; we will introduce the obligation to publish information about the successfulness of restructuring and bankruptcy administrators. (Volebný program SaS, 2016)
The issue of restructuring is dealt by four political subjects, concretely Most-Híd, Sieť, SNS and SaS. In the case of first three mentioned parties, it is again just partial solutions. It is also possible to find some agreement or similarities between some political parties, for example in the case of parties Most-Híd and Sieť, which deal in their election programs with mailbox companies and their inability to participate on bankruptcies. Similarly, it is possible to consider between Most-Híd, SNS and SaS within the issue of claim on payment of debts for creditors; however, they differ in percentage proportion. Most-Híd proposes 50 % to 2 years, SNS 60 % to 5 years, and SaS 50 % to 4 years. Also in this case it is possible to say that the SaS party solves the question of restructuring most complexly.
Another problem, which frequently appeared in programs of political parties, was the investment aid. The objective of the party Most-Híd is to increase the transparency and forthrightness of providing of investment aid. They propose such change of rules of providing of investment aid, which will move it more significantly into regions with above-average unemployment rate. They also propose the gradual elimination of use of direct financial aid and focus solely on use of tax allowances, as the form of investment aid. (Volebný program Most-Híd, 2016) SaS proposes to cancel investment stimuli. (Volebný program SaS, 2016) Political movement Sme rodina wants to support small and middle-sized business by giving them similar stimuli as large and foreign investors. The extent of support has to depend on the number of newly created work positions and on their sustainability. (Volebný program Sme rodina, 2016) SNS proposes providing of investment stimuli only to those business subjects, which regularly fulfill their tax and levy obligations, preferably to companies with Slovak ownership structure. (Volebný program SNS, 2016) OĽaNO proposes the support of business incubators, i.e. associated centers of supporting services. These centers will be the place, where starting entrepreneurs, or also the potential investor, will find on one place everything what will need in order to start the business in fast, simple, effective and relatively cheap way. (Volebný program OĽaNO, 2016)
Differences in the question of investment aid are relatively significant. Political party SaS proposes cancellation of investment stimuli. Most-Híd wants to enforce the forthrightness and transparency of providing of investment aid and their directing into regions with high level of unemployment. According to political movement Sme rodina, domestic investors should get similar aid as foreign investors. OĽaNO proposes introduction of business incubators.
Within the context of this topic, we cannot omit also the issue of taxes and levies. Most-Híd stands for the stability of tax system and supports the return to the flat tax on income of 19%, while by favorable development of public finances they propose further gradual decreasing: We recommend to cancel the higher tax rate on income of natural persons (25%) and to decrease the tax for legal persons (from current 22%). At the same time, we propose cancellation of tax licenses. We will stand for simplification of tax system: where by tax on income by natural persons should exist one tax rate, one allowable item on the taxpayer and progressive tax bonus on children. (Volebný program Most-Híd, 2016) OĽaNO wants to cancel tax licenses. Among other regulations belong: increase of tax on income to 50% to banks and regulated subjects. Such acquired resources will be used for increase of tax bonus on child and decrease of VAT on all comestibles to 10%. (Volebný program OĽaNO, 2016) SaS proposes these regulations: return of flat tax on income to 19%, decrease of flat tax on income rate to 15%, return of tax rate took by withholding tax from 35% to 19%, later to 15% and cancellation of tax licenses. (Volebný program SaS, 2016) Sieť wants to simplify the tax system, decrease the amount of rates of VAT and exclusions, and to eliminate anomalies, when, for example the small-business entrepreneur pays higher tax rate on income, than the large enterprise. (Volebný program Sieť, 2016) According to the political movement Sme rodina, employed persons should pay low flat tax of 16%. Small and middle-sized businesses should pay the flat tax from profit also on the level of 16%. The same tax should pay also large companies, which really produce something and employ people. Companies making business on the basis of license from the state, so-called oligopolies, should pay approximately double tax, in the amount to 33%. Monopolies should pay even higher taxes on profit, in the amount to 50%. (Volebný program Sme rodina, 2016) SNS wants to decrease taxes on income of natural and legal persons on 19%, decrease the VAT rate on 10% for all Slovak foodstuff products from yard. This party also wants to enforce the act on taxation of monopolies and banks. (Volebný program SNS, 2016)
The area of taxes and levies is probably the most interesting. It is possible to find there many similarities and differences. Political parties Most-Híd and SaS want to enforce the flat tax of 19%, while SaS wants to decrease it later to 15%. In contrast, Sme rodina proposes the gradual tax on income for people, small, middle-sized and large enterprises on 16%, for oligopolies on 33% and for monopolies on the level of 50%. SNS proposes the tax on income of 19%, and for monopolies and banks individual taxations. Most-Híd and OĽaNO propose to cancel tax licenses. Most-Híd proposes progressive tax bonuses on children in dependence on the number of children, and OĽaNO proposes increase of tax bonus on children. SNS and OĽaNO propose to decrease VAT on comestibles on 10%. Sieť and Most-Híd want to simplify the tax system.
65.Conclusion
From mentioned facts arises that with the issue of decrease of bureaucratic load for entrepreneurs dealt three political subjects (Most-Híd, Sieť, SaS). This problem was elaborated most complexly by SaS. With the issue of restructuring deal four political parties, which are Most-Híd, Sieť, SNS and SaS. In the case of first three parties, there are only partial solutions. Also in this case it is possible to say that most complexly elaborated issue of restructuring has the party SaS. Differences in the question of investment aid are relatively great. The area of taxes and levies is probably the most interesting. It is possible to find there many similarities and differences.
66.References
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Kubíčková, D. (2015). The problems of the elderly people in Slovakia after 1989. In International multidisciplinary scientific conference on social sciences and arts SGEM 2015. Sofia: STEF92 Technology Ltd., p. 407 – 414.
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Slovák, P. (2015). The current perception of the problems of massive migration to Europe or socio-psychological view on migrant. In Bočáková, O., Dudžáková, A. (eds.) Migrácia v teoretickej a praktickej reflexii. Brno: Tribun EU, p. 93 – 105.
Žúborová, V. (2015). Buzzwords on local policy? Political communication and political discourses on national policy. In International multidisciplinary scientific conference on social sciences and arts SGEM 2015. Albena: STEF92 Technology Ltd., p. 27 – 33.
Statistical office of the Slovak Republic. Dostupné na: https://slovak.statistics.sk.
Volebný program Most-Híd, 2016. Dostupné na: http://obcianskavizia.sk/.
Volebný program OĽaNO, 2016. Dostupné na: http://www.obycajniludia.sk/program/.
Volebný program SaS, 2016. Dostupné na: http://www.strana-sas.sk/program/16.
Volebný program SNS, 2016. Dostupné na: http://www.sns.sk/dokumenty/volby-2016/.
Volebný program Sieť, 2016. Dostupné na: http://siet.sk/program/.
Volebný program Sme rodina, 2016. Dostupné na: http://www.hnutiesmerodina.sk/program.php.
Contact
PhDr. Alexander Čemez, PhD.
Univerzita sv. Cyrila a Metoda v Trnave
Fakulta sociálnych vied
Katedra verejnej politiky a verejnej správy
Bučianska 4/A
917 01 Trnava
cemez1@gmail.com
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