Fin Min Removed, Caretaker PM Takes Over As Political Paralysis Looms

Finance Minister Igor Matovic has been removed from office by President Zuzana Caputova, with caretaker PM Eduard Heger taking over as part of a deal agreed with opposition parties that saw the 2023 budget approved on 22 Dec.

• The centre-right minority gov't led by Heger lost a no confidence vote in parliament last week, but continues in a caretaker capacity with reduced powers until a decision is made by the president and a majority in parliament as to whether a snap election is called, a new coalition formed, or if Heger serves an extended position as caretaker PM. No signal of a decision being made in short term. Gov't can do very little in the interim.
• The passage of the 2023 budget seen as an important step for the eurozone member state, given the implementation of a provisional budget would have seen spending curtailed significantly as Slovakian households and business struggle with high inflation and rising energy prices.
• A change in gov't could have knock-on implications for Bratislava's support for Ukraine. Centre-left populist opposition parties Hlas and SD-Smer significantly less supportive of Kyiv, with more focus on insulating Slovakian households from energy price spikes.