In 2003, the Slovak government should allocate SKK 2.217 billion from state funds for construction of an assembly plant of French carmaker PSA Peugeot Citroen in Trnava. The government plans to squeeze the money from frozen budgets of individual ministries. About SKK 900 million should be obtained in form of savings in budgetary expenditures and between SKK 300 million and SKK 450 million should be cut from cabinet’s reserves. Additional SKK 1 billion should come from frozen budgets of the ministries. The Economy Ministry should come up with the money by the end of January. Privatization proceeds should not be used since they are planned for debt servicing and social reform, Finance Minister Ivan Miklos said after a session of ministers with economic portfolio on Monday. The cabinet will deal with the material at its regular session on Wednesday.

PSA Peugeot Citroen should launch the construction of the new plant in Trnava this September. Basic investment of the French carmaker should be EUR 710 million. Slovakia’s total expenditures to meet obligations towards the investor are estimated at SKK 6.5 billion. Annual production capacity of the Trnava plant in the first stage should be 280,000-300,000 cars. The investor will directly create 3,500 jobs, while secondary employment should reach 6,000-7,000 jobs. The plant should be built on the area of 190 hectares.