OECD Economic Surveys: Slovak Republic 2012

Table of contents
Basic statistics of Slovak Republic, 2011
Executive summary
Key policy recommendations
Assessment and recommendations
	The economy has been resilient
		Figure 1. Key macroeconomic indicators
		The short-term outlook has weakened
			Table 1. Short-term projections
			Figure 2. Capitalisation of the banking sector and credit conditions
		Medium and long-term economic prospects are uncertain
			Figure 3. Competitiveness and labour market developments
		Labour market developments have been unfavourable
			Figure 4. Labour market outcomes
			Figure 5. Inequalities
	Consolidating public finances in a growth-friendly way
		Figure 6. Fiscal deficit and 10-year government bond rates
		Table 2. Public finances
		Improving the fiscal framework
		Ensuring the sustainability of the pension system
		Reducing the cost of consolidation
			Figure 7. General government spending and revenue
			Table 3. Consolidation measures as planned in November 2012
			Table 4. Composition of tax revenues
			Figure 8. Efficiency of tax collection
			Box 1. Key recommendations for fiscal policy
	Reforms to underpin longer-term growth
		Raise educational outcomes
			Figure 9. Spending, average achievement and saving opportunities in education
			Figure 10. Teachers’ remuneration
			Box 2. Key recommendations for education policy
		Improve labour market performance
			Box 3. Recent and future changes in the labour code
			Table 5. Tax wedges
			Figure 11. Work incentives
			Figure 12. Spending on active labour market policies
			Box 4. Key recommendations for improving labour market performance
	Bibliography
	Annex A1. Progress in structural reform
Chapter 1. Improving the fiscal framework to enhance growth in an era of fiscal consolidation
	Returning public finances to a sustainable path
		Figure 1.1. General government gross debt and deficit
		Restoring public finances will require a long-term effort
			Figure 1.2. Medium-term debt profiles and sensitivity to bond yields and potential growth
			Box 1.1. Is a near-to-structural balance rule optimal for Slovakia?
		Population ageing increases contingent liabilities
	Strengthening the medium-term budgetary framework
		A debt rule is a useful reinforcement of budget discipline
			Box 1.2. Procedures for containing government debt
		The new Fiscal Responsibility Board will help monitor fiscal sustainability
			Box 1.3. Nature and role of the Fiscal Responsibility Board
	Attaining a sustainable and growth-friendly spending path
		Strengthening the medium-term expenditure planning processes
			Figure 1.3. General government spending and revenue
		Reprioritising government spending to enhance growth and efficiency
			Table 1.1. Growth-friendly consolidation strategies
		Increasing spending efficiency
			Figure 1.4. General government expenditure by economic category
			Table 1.2. General government labour costs
			Figure 1.5. Efficiency of tax collection
		Reducing tax expenditures to remove distortions
		Reforming entitlement programmes selectively
			Figure 1.6. General government expenditure by function (COFOG)
			Figure 1.7. Income inequality and social spending
		Raising growth-contributing spending
			Figure 1.8. Government budget appropriations or outlays for R&D
			Figure 1.9. Public investment
			Box 1.4. Principles for the public governance of public private partnerships
	Strengthening the role of public administration for successful spending programme implementation
		Improving budgeting procedures
		Enhancing transparency and public oversight
			Box 1.5. Recommendations for improving the fiscal framework
	Notes
	Bibliography
Chapter 2. Investing efficiently in education and active labour market policies
	Labour market performance is weak
		Long-term unemployment is prevalent
		Youth unemployment is widespread
			Figure 2.1. Youth unemployment rates
		Low-educated and Roma are particularly vulnerable
			Table 2.1. Employment rates and educational attainment, 2010
		Unemployment is concentrated in remote regions
			Figure 2.2. Regional disparities in unemployment rates
	Developing active labour market policies
		Spending on active labour market policies is low
			Figure 2.3. Spending on and participation in ALMPs by level of unemployment
		Programmes are insufficiently oriented towards labour market needs
			Table 2.2. Participants in ALMP, 2010
			Figure 2.4. Participation in ALMP by region
		Comprehensive evaluation is lacking
		Strengthening public employment services
			Figure 2.5. Workload of PES
		Improving the effectiveness of the activation programmes
			Figure 2.6. Participants in start-up incentives by educational level, age and region
			Figure 2.7. Participation in direct job creation and training programmes
			Box 2.1. Recommendations for improving active labour market policies
	Investing efficiently in education
		Educational outcomes are below OECD averages
			Figure 2.8. Educational level, average Pisa score and impact of the socio-economic background
			Table 2.3. Educational attainment of the Roma population
		Improving educational outcomes would be highly beneficial
		Public spending on education is low
			Figure 2.9. Spending on education and Pisa score
		Achieving efficiency gains in the primary and secondary education systems
			Figure 2.10. Average class size and student-teacher ratio in primary and secondary education
		Increasing resources allocated to teaching activities
			Figure 2.11. Teachers’ remuneration
		Concentrating efforts on disadvantaged pupils
			Box 2.2. Policy initiatives to raise educational outcomes of the Roma population
		Improving the transition from school to work
			Table 2.4. Unemployment rate by educational attainment level
			Figure 2.12. Early school leavers
			Figure 2.13. Vocational programmes in tertiary education
			Box 2.3. Introducing an effective apprenticeship system
		Developing lifelong learning
			Box 2.4. National measures to develop lifelong learning
			Box 2.5. Recommendations for education policy
	Notes
	Bibliography