Slovakia makes the rich pay for crisis

Legislators backed the comprehensive policy manifesto, which outlines a strategy for developing Slovak society up to 2030, by a vote of 82 to 63.

Left Social Democrat PM Robert Fico holds a comfortable majority in the Slovakia's parliament, with 83 of its 150 seats.

He was swept to power in March by voters fed up with the neoliberal government of Iveta Radicova.

Her administration sought to undermine workers' rights and converted all state hospitals into joint stock companies.

The policy manifesto developed by Mr Fico's Cabinet contains a raft of robust deficit-reduction measures including a higher bracket for top earners, a 3 per cent increase to the corporate tax rate - taking it to 22 per cent - and a special banking tax along with property taxes on the wealthy.

"The consolidation of public finances is impossible without economic growth and job creation," Mr Fico told parliament.

"Cuts and savings automatically lead only to a rise in inflation and unemployment. What's the use of saving if it leads to a downward spiral?"

Mr Fico's pro-EU government has agreed to bring its budget deficit to below Brussels's arbitrary limit of 3 per cent of gross domestic product in 2013 - from 4.8 per cent last year.

This necessitates cuts worth around €250-300 million (£200-£240m) for this year and €1.2-1.5 billion (£0.9-1.2bn) in 2013.

But Mr Fico denied that Slovakia was "doing this because of Brussels.

"We are doing this for ourselves, so that Slovakia can more easily raise funds on financial markets," he told MPs.

Slovak Democratic and Christian Union parliamentary head Ludovit Kanik claimed the programme would leave ordinary people poorer.

"Not the wealthy but all people will pay for the economic management of this government," Mr Kanik predicted.

As well as developing a relatively progressive approach to bringing down the government deficit, Mr Fico's government plans to keep strategic state companies in public ownership and boost trade relations with the developing world and Russia.

It also intends to accelerate the development of new nuclear power units.