BRATISLAVA, Slovakia—Thousands of labor unions members are rallying in the Slovak capital to protest austerity measures approved by the government.
They oppose an increase of value added tax on food and other products and higher consumer taxes that the government says are a necessary part of efforts to reduce the budget deficit that could reach almost eight percent of gross domestic product this year.
Prime Minister Iveta Radicova says the measures will be abandoned as soon the deficit is trimmed to three percent, possibly by 2013.
But the unions said Tuesday their members will be most hit by the measures and threatened further protests. They say the government should increase taxes on luxury goods instead.
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