It is a great honour and a pleasure to be here with you today, since today's event is - due to its relevance and tradition - among the most important specialized events of the business community. Let me therefore start by thanking the representatives of the Economist weekly for inviting me and by expressing my respect for organising this traditional meeting of businessmen, representatives of government and the NGOs, which is an opportunity to discuss topical economic issues of Slovakia.

On this occasion I would like to reiterate that I consider a sound, efficient and transparent business environment the basic precondition for the development of the economy of the country and hence the entire society. The government will take measures, which will allow us to accomplish the ongoing standardisation of the business environment in order to achieve parameters typical for EU Member States. At the same time, please allow me to express my firm belief that intensive dialogue is the most efficient tool to find optimal solutions. Therefore I hope that in the discussion part I will have the opportunity to receive your feedback regarding the steps the government has taken but also to find inspiration to further steps.

The topic of our meeting today - the government's priorities - directly derives from the government's policy statement that has been discussed in expert circles ever since it was published. In my contribution I shall therefore refer to the contents of this document, however I shall focus on those priorities that I consider as areas of concern for the entire government and for me personally. There are three such priorities: Integration, reforms and enhancement of the environment. You will have the opportunity to discuss the priorities of individual sectors and the strategies of implementation with other members of the government who will attend this conference.

I. Priorities of the Government

A. Integration - Accession to EU and NATO
The first of the priorities mentioned is the accomplishment of our integration efforts. We consider it extremely important for Slovakia to be firmly and definitely anchored in the transatlantic economic and security area. In the recent elections the people of Slovakia have confirmed their interest in full-fledged and final integration with countries that respect democratic principles of the developed world. Hence, the main and key starting point for the formulation of priorities and strategies of the Slovak government until the year 2006 was its decision "to make the decisive steps that will bring Slovakia once for all into the community of European democracies to become member of the European Union and the North-Atlantic Alliance (NATO)". Slovakia thus came closer not only to accomplishing its own vision and until recently a dream of its integration into European and transatlantic institutions, but became one of the co-creators of a Europe whole and free. It shall be the role of the government for the upcoming term in office to not only attain membership and efficiently work in the EU and NATO, but also to develop relations with neighbouring countries and cross-border cooperation. However, prior to the accession itself we have to focus our increased attention on completing the accession talks with NATO and the fastest possible approval of Slovakia's membership by the national parliaments of NATO members. Also we are facing the ratification process in the EU Member States and a referendum (with the proposed date 16 - 17 May 2003), where our citizens will decide on our membership in the EU.
If I were to try to describe the current state of the Slovak society in one sentence, as regards its preparedness for joining the above mentioned structures, I would like to use as a point of reference a quote from the reports drafted about Slovakia by the bodies of the European Commission during the EU accession process. The report on the preparedness of the SR for EU accession says (I quote): "Slovakia achieved a stability of institutions guaranteeing democracy and the rule of law." I consider this statement a very important one, mainly because it clearly defines Slovakia as a country with standard and secure environment not only for its own citizens, but for everybody who decides to live or do business in Slovakia. While mentioning security, allow me to emphasise that Slovakia is aware of its shared responsibility and it is at the same time ready to join in the solution of global security issues related to new threats appearing in the form of terror also at a time when it is not yet a member of the Euro-Atlantic security structures of NATO.

B. Reforms

The second equally important priority are reforms, for which the government was preparing a strategy in the first 100 days after creating the cabinet. These days saw the final preparations of the strategies for a social reform; pension reform, tax reform and my ministers are now presenting them to experts and the general public. All these reforms are focused on justice, transparency and supporting initiatives. We are also aware that these reforms will only be successful if they are interrelated and implemented as a joint project. And this is how it shall be. However there is something else that matters. We are about to enter into a tough and challenging era, when we will have to put these reforms through not only in terms of legislation but we will have to gain the broadest possible public support for them. All these reforms have goals that are identical with the goals of sound enterprise. Therefore it has to be our common interest to prevent that discussions on the reforms become demagogic, and to hear serious statements, for the public to accept their principles and see the reforms as we mean them - as an opportunity for a better life.

1. in the area of Economy and Finance

Allow me to briefly touch upon the reforms in the area of national economy and finance. Some have been already implemented in the previous term of the government, while many were accompanied by a deep distrust on the part of the citizens, as was the reform of the finance sector. We have started and partially implemented several reforms, however they have to be completed now. Thus, the government shall continue to take pro-reform steps, in implementing the reforms in the area of economy and finance and it shall pursue such macroeconomic policy that will create preconditions for a sustainable economic growth. It is our goal to achieve such growth mainly through growing labour productivity, influx of foreign investment, creating a favourable business environment for business development, support of a stable exchange rate of the Slovak crown, appropriate interest rates and transparent tax laws. The government intends to make the starting up of an enterprise easier, mainly by simplifying the administrative process. Our success in simplifying and increasing the functionality of commercial legislation is also demonstrated by the fact that The Economist has called the amendment to the Slovak law on Collateral the best of this type in the world. The government will also prepare and implement a new concept for the development of tourism, with focus on promoting active tourism, mainly ecotourism, which will make the sights of our country accessible to a larger number of tourists.

In the area of finance, one of the key goals for the government is the introduction of stringent budgetary restrictions in public finance. This shall prevent not only the wasting of budget funds by state and public institutions but mainly the creation of new debt. By changing the way of managing public finance, fiscal decentralisation should ensure the transfer of fiscal power to bodies of self-administration alongside the competencies and thus strengthen the self-governing function of regions and municipalities. These measures are directly related to the ongoing process of public administration reform. The Ministry of Finance is to adapt the methodology of reporting revenues and expenditures of the state budget of the SR to the European methodology ESA 95 as soon as possible. On one hand the prepared reform of the tax system will bring an increase in the efficiency of tax and charges collection but on the other hand it will also mean a simplification of tax legislation and a reduction in the tax burden and social charges. We are convinced that these reforms will contribute to a growth in employment and at the same time will significantly contribute to an improvement and enhanced attractiveness of the business environment in Slovakia.

2. in the area of Justice

We attach an equally great importance to the reforms in the area of legal environment. The basic goal of the prepared reform of the judiciary is to create a judicial system based on respecting the principles of a fair trial, independent, impartial and trustworthy deciding of courts without unnecessary delays. Key in the implementation of this goal is the accomplishment and operation of the Court management project. After signing the Accession Treaty with the EU, it will be crucial to adapt the system of state administration in EU matters to allow the SR upon joining the EU an efficient participation in the EU decision-making. I consider fight against corruption one of the key priorities of the government. Changes that will bring progress in penal proceedings, will be the introduction of penal liability of legal entities, increased penalties for the most serious offences and in case of less serious offences the contrary - the possibility of alternative penalties. The goal of re-codifying the penal law is to have modern penal proceedings that will be fast and efficient. The process of harmonising Slovak legislation with the EU rules and regulations will continue in order to achieve full compatibility. The government is aware of the fact that the current state of the judiciary in Slovakia is one of the most frequently criticised areas in public affairs and therefore we shall place particular emphasis on meeting the set reform targets in this area.

3. in the area of Social Affairs, Health Care and Regional Development

The priority of the government in social affairs is to reduce unemployment and to increase the efficiency of the social system. In order to achieve these goals the government tasked the competent minister to prepare reform measures in almost all sectors of social policy. We are convinced that only profound and systemic changes to the labour market, in the social charges and the social system can result in reduced unemployment and increased efficiency and transparency of the social system. The reform shall not only motivate people to look for work but also to keep it, thus increase the qualifications and motivation of labour in Slovakia. The pension system reform is among the main priorities in this area, as is the reform of the social welfare system and the social security system and the reform of the labour market through the prepared amendment to the Labour Code that shall significantly increase the labour market flexibility. Last but not least the government shall focus on decentralisation and efficiency of public service where it shall strengthen the role of the regions and municipalities in providing social services and involve them more significantly in the fight against the abuse of the social system.
We are facing very difficult and politically risky measures in the area of health care. The current state, but mainly its insupportability leaves us with almost no room for manoeuvre. The government set the goal to reduce or even stop the growing debt, mainly through a new definition of health care, by introducing payments for services related to health care, which are not health care as such and by new initiatives in medication policy such as the methods of categorising medication. By means of new laws on health care insurance and the Code of Standard Treatment Procedures we will attenuate the excessive expectations of the people and mobilise private funds. The overall goal of the reforms in this area is to increase the efficiency of the system, including the efficient accessibility and at the same time to improve the quality of health care provided and thus the health of the people.

All these reforms are not only energetic but also coordinated. Their common denominator is justice, transparency and support to initiatives and efforts by individuals.

C. Improving the social, legal and business environment

The third fundamental priority is to create conditions and adopt measures aimed at improving the social, legal but also business environment. This priority includes all the government's activities aimed at fighting against evil in all its appearances, mainly fight against terrorism, fight against all forms of crime and fight against corruption. However, to do this we need not only the verbal support from the citizens and entrepreneurs, to be able to be tougher and more successful in the fight against organised crime, to suppress crime and corruption. We have to do it by introducing stricter legal measures that I have already mentioned, but also by increasing the law enforcement and trust of the public towards state institutions. In this area we rely mainly on the business community that should not be afraid to say that the independence of the judiciary does not mean being independent of the laws and being arbitrary in decisions, but that it means deciding according to your conscience and in line with the law.
It is a very complex effort to judge the quality of the business environment. Therefore, in evaluating this quality, let me rely on the conclusions of renowned rating agencies, which through their ratings allow comparing the risks of individual countries and thus indicate the quality of the business environment in a given country. Slovakia's rating for long-term foreign exchange liabilities increased to the investment level at the end of last year by Standard and Poors, Moodys and Fitch is a clear confirmation of the correct approach in the economic policy of our government. For us it is now important to maintain the momentum and continue in implementing measures that will help us to create a transparent business environment and thus further economic growth on a sound economic foundation.

III. CONCLUSION

Excellencies, distinguished Ministers, Ladies and Gentlemen,

By defining the above priorities the government set ambitious targets, which it shall meet through particular programmes and reforms. I consider it important to communicate these targets to all groups of people and entities that are actively involved in social and economic processes in our country. The government has the possibility to create frameworks and to influence the environment, however economic growth and creating added value is up to the business entities. I am very happy that I have the opportunity today to discuss this issue with the representatives of international companies working in Slovakia but also with those who think about doing business in Slovakia. I do believe that this discussion can result in a better understanding and thus in speeding up the already mentioned social and economic processes for the benefit of all in the Slovak economic area.

Thank you for your attention.