FREE GEOPOLITICAL NEWSLETTER

slovakia  

For current reports go to EASY FINDER

SLOVAKIA


 

 

In-depth Business Intelligence

Key Economic Data 
 
  2003 2002 2001 Ranking(2003)
GDP
Millions of US $ 31,868 23,700 20,500 59
         
GNI per capita
 US $ 4,920 3,950 3,760 73
Ranking is given out of 208 nations - (data from the World Bank)

Books on Slovakia

REPUBLICAN REFERENCE

Area (sq.km) 
48,845

Population
5,423,567 

Capital 
Bratislava 

Currency 
Koruna 

President 
Ivan Gasparovic

Private sector 
% of GDP
60%


 
Update No: 095 - (31/03/05)

Bratislava hosts the summit
It is significant that when the two most powerful men in the world decided to meet earlier this year they did so in Slovakia, now in the good books of both. Presidents Bush and Putin met in Bratislava on February 23rd-24th.
The summit meeting of the US and Russian presidents, George Bush and Vladimir Putin, took place at Bratislava Castle. Slovak President Gasparovic invited Putin to stay in Bratislava for one more day on a bilateral visit, which he duly did. 
The bad old days of the thuggish Vladimir Meciar, premier from independence in 1993 to 1998, are firmly behind Slovakia. It is now courted on all sides. "The three of us have unanimously agreed that Bratislava Castle should be the summit venue, also as a symbol," Gasparovic said on January 18th after a meeting with Prime Minister Mikulas Dzurinda and parliament chairman Pavol Hrusovsky. Situated on a rocky outcrop above the Danube River, Bratislava Castle dates back to the early Middle Ages, but has been extended and reconstructed many times since. At present it houses exhibitions from the Slovak National Museum (Historical Museum and Music Museum), as well as the reception rooms of the Slovak president and parliament. It is a national cultural monument.
Not much seemed to have come out of the summit meeting, unless in private. But the fact that it took place on Slovakian soil speaks volumes for modern Slovakia. 

The Slovak 'miracle'
Slovakia has come in from the cold. It is now widely recognised that Slovakia has a right to exist, which many disputed beforehand. Under Premier Dzurinda, it has done extremely well of late, notching up high growth rates and earning itself a very high reputation for political sagacity in avoiding the temptation to go nationalist. Twelve years ago in January 1993 when Slovakia broke away from the Czechs few would have predicted that it would do so well out of secession. Most viewed it as a retrograde affair, motivated by the sinister ambitions of an unsavoury character, Meciar.
A turning point came with his ejection in parliamentary elections in 1998, whose verdict he did at least have the grace to accept. He had run a corrupt and racist regime, which discredited the country and debarred it from EU and NATO entry. 
Last year he made a surprisingly good showing in the first round of presidential elections. But the present incumbent, Ivan Gasparovic, beat him in the second round on April 19th, to the great relief of Brussels, for Slovakia was just about to join the EU, which it duly did in May, 2004.
Slovak Premier Dzurinda is one of the most remarkable leaders thrown up by the transition from communism. He has won two successive elections, the first time a prime minister has done so in Central Europe. Judged against the continuing corruption and economic stagnation of former communist bloc states in most of the former Soviet bloc that have not fully democratised, Slovakia has witnessed a decisive transition.

Almost ready for Euroland?
The economy is buoyant. Slovakia posted year-on-year GDP growth of 5.3 per cent in the year to November, 2004 the latest figure available. The government intends to implement its approved reforms this year, aiming at improving citizens' standard of living, said Dzurinda, unveiling the government's priorities for 2005 in early January. "We expect 2005 to be a year of real-wage growth at more than 3 per cent," said Dzurinda. The number of new jobs should also grow by 1 per cent, while consumer price inflation should slow down. The cabinet also wants to address the issue of regional disparities.
This year, the Slovak government has yet to push through the reform on university funding. Other priorities include attaining an active presence in the Euro-Atlantic structures, the drawing of European funds, and Slovakia's fulfilment of criteria to join the European Monetary Union (EMU) and the Schengen Agreement on outer EU border safety.
There is no doubt that Slovakia is currently better equipped to enter Euroland than any other Central or Eastern European candidate. "We are in better shape than most of our neighbours in public finances," said Ivan Miklos, Slovakia's finance minister. It is true, with a low inflation rate running near 3%, a much reduced budget deficit and a will of iron to be the good guys of Central Europe financially. 

The grave Roma problem
Nevertheless, not everything is so hunky-dory in Slovakia - nor is the government above reproach in all its policies. The commemoration of the 60th anniversary of the liberation of Auschwitz and the Nazi death camps by Soviet soldiers on January 24th was a moving affair. Insufficiently stressed, however, was that two million Roma lost their lives in the Holocaust as well as six million Jews.
The Roma still live in a dismal plight, discriminated against in multiple fashion, as happened before the war - and there is no Romany Israel for them to go to.
The Ivan Krasko settlement - incongruously named after a famous poet - last February was the scene of the worst riots in Slovakia since the restoration of democracy in 1989. A force of 250 police with water cannon pushed a mob of 400 Roma back to the settlement and then made house-to-house searches, allegedly beating many of the inhabitants.
The food riots highlighted the desperate living conditions of Slovakia's 320,000-strong Roma minority, the poorest and one of the largest gypsy populations in the expanded European Union. For Western Europe, the target of Roma migration in the past, Slovakia's EU accession last May now raised fears of a new wave of migrants.
Half the Slovak Roma live in 150 settlements, where typically there are no tarmac roads, no running water, and one third of the homes are shacks. In Trebisov, where 4,000 of the town's 23,000 population are Roma, the settlement consists of a few rotting blocks of council flats, some rows of squat bungalows built by wealthier Roma during the Communist era, and a scattering of illegal wooden shacks. Each dwelling has been sub-divided so that every son's or daughter's family occupies a single room, with 15 people or more crowded into a four-room bungalow.
In the settlement, electricity is intermittent, water is drawn from street pumps, and excrement is thrown out of the window on to frozen mounds of rubbish.
The February riots were provoked by the rightwing government's closely watched experiment to encourage the long-term unemployed to search for work by slashing their benefits in half. The reform refuses to treat the Roma, who make up 80 per cent of the long-term unemployed, as a special case. Yet in the settlements there is 100 per cent unemployment and the whole community is dependent on benefits.
The cuts took effect just at the end of winter, when seasonal odd jobs, such as collecting scrap metal, had not yet begun. Moreover, public works schemes to soften the impact of the cuts were not yet up and running.
Now 120,000 unemployed are working typically twice a week for five hours. The payment of Sk1,500 (€39, $51, £27) per month can bring a typical large Roma family's benefits back up to two-thirds of the previous level. In Trebisov 400 unemployed, mostly Roma, are picking up and sorting rubbish, for example, and helping pensioners in their homes. In fact there is more demand than places available, because the town does not have enough co-ordinators or equipment.
"We can't employ all those who want to work," said Jan Krivy, mayor of the nearby village of Trhoviste, where Roma also rioted. "They've done a lot of good work and the village is as clean as it has ever been."
The schemes have given the Roma - many of whom have not worked since the compulsory employment of the Communist era - some of the basic disciplines needed to hold down a job. "They're just starting to learn how to work," said Mr Krivy. "At the beginning they had problems waking up early and with work itself, as they are used to doing nothing and sleeping through the whole day."
But the schemes have given Roma few worthwhile skills, nor have they opened up any real employment possibilities in a region of high unemployment and endemic racism. In Trebisov, where there is 18 per cent unemployment, just three Roma - all work scheme co-ordinators - have gone on to secure manual jobs as rubbish collectors and security guards.
"Even the whites don't have jobs, so how can we?" said Jozef Copak, a disabled father of seven. "Anyway, when an employer sees it's a Roma he rejects him."
Moreover the benefit cuts, together with rises in value-added tax and excise taxes, have impoverished the Roma further and created more social problems. Mayor Dusan Polacky says many Roma have stopped paying council rents and community charges, while local residents are improving fences and buying dogs to stop thefts from allotments and Roma searching through their bins. "We're the ones who are left to deal with this bad situation," he said.
Yet despite initial fears in other countries, few Slovak Roma have responded to the benefit cuts by migrating. Most are too poor to travel and those that have sought work abroad often return disappointed because they lack relevant skills and languages.

Slovak attendance at the Sofia conference on the Roma problem
The Slovaks sent a delegation to the conference opening in Bulgaria in early February concerning the European-wide problem of the Roma. Leaders from Central and Eastern Europe launched in Sofia on February 2nd the Decade of Roma Inclusion - an international initiative to improve the status of Roma, Europe's most vulnerable minority. 
While most of the countries involved were represented by their premiers, Slovakia only was by its deputy premier, Pal Czaky. Dzurinda has something on his conscience!

« Top

AUTOMOBILES

Carmaking industry puts a dent in foreign trade

Slovakia's foreign trade in December, which showed a deficit of 9.3bn Slovak crowns (244.22m Euro), was worse than expected by analysts, TASR reported recently.
"A higher deficit has been last seen in December 2002. This development is a result of the plunge in exports after 2.5 years. This most likely reflects a hiatus in the output of the carmaking industry because of the need to prepare production lines for a new model," Maria Fegerova, an analyst with local bank Slovenska Sporitelna (SLSP), said.
According to Silvia Cechovicova from the Czech bank CSOB, the decline in car exports was also reflected in the lower imports of auto components. The cumulative trade balance for the whole of 2004 showed a deficit at 45.523bn crowns, nearly double that of 2003.
"This development was caused mainly by the fast-growing volume of imports accelerating towards the end of last year and, not least, weak exports," said Miroslav Smal, an analyst at Postova banka. He sees the worse total exports mainly as a result of lower car exports.
"This confirms a significant dependence of the economy on a single sector, namely one car-maker (Volkswagen). Once other carmakers bring their production on stream this shouldn't be as prevalent a factor," he said.
Analysts expects 2005 foreign trade gap to rise to 60bn crowns mainly due to higher investment-related imports and growing household consumption

« Top

ENERGY

Slovnaft reports bigger profit

Slovakia's major oil refinery Slovnaft reported a net profit of almost 10.1bn Slovak crowns (265.4m Euro) for 2004, Slovnaft Director General, Vratko Kassovic, was quoted as saying by TASR recently.
Slovnaft's operating profit totalled 12.5bn crowns and consolidated profit before interest, taxation, depreciation and amortisation (EBITDA) rose to 16.4bn crowns in 2004. Export revenue made up about 78 per cent of the total profit. Kassovic attributed 2004's excellent returns to previous and current investments, which allowed Slovnaft to become one of Europe's most modern refineries. Product sales revenue in 2004 rose by almost 29 per cent year-on-year, thanks to increased exports of motor fuels and petrochemical products, the company said. Revenues from these products in foreign markets rose 35 per cent year-on-year in financial terms and 10 per cent in volume terms. Last year's sales within Slovakia fell 3.5 per cent year-on-year.

« Top

FOREIGN RELATIONS

Bratislava and Riga mull stronger EU unity

During his official visit to the Slovak Republic recenlty Latvia's Minister of Foreign Affairs Artis Pabriks met with the senior officials of the country, slovensko.com reported. 
At his meeting with the President of Slovakia, Ivan Gasaparovic, several issues were discussed, including also the visit of the President of Slovakia to Latvia on March 2nd to 4th.
Gasaparovic informed Pabriks on the expected ratification of the treaty establishing a constitution for Europe by the parliament of Slovakia and pointed towards the significance of the treaty in the strengthening of European Union unity in future. Both officials also discussed the prospective relations between the EU and Russia.
Pabriks familiarised the president of Slovakia on Latvia's position regarding the decision of the President of Latvia, Vaira Vike Freiberga, to participate in the festive events on May 9th in Moscow and other current issues of the Latvian-Russian agenda. During the visit the minister met with the Minister of Foreign Affairs of Slovakia, Eduard Kukan. Both officials agreed that there is close cooperation between Latvia and Slovakia; however, it is possible to strengthen it, especially in economy.
The ministers discussed the experience of both countries in the international organisations paying special attention to EU enlargement and the new EU neighbourhood policy. Relations between the EU and Russia were also discussed at the meeting. Pabriks also met with the Deputy Prime Minister and Minister of Finance, Ivan Mikloa, and exchanged opinions about the EU financial perspective where both countries have common interests. Pabriks spoke with the Chairman of the Foreign Affairs Committee of the Slovakian Parliament, Pavol Paska, and discussed issues of cooperation between the countries, process of ratification of the treaty establishing a constitution for Europe, and EU-Russia dialogue. During the visit, an Agreement on mutual protection of classified information was signed.

Putin: Slovakia forging stronger contacts with Russia

Slovakia has chosen to become a member of the European Union and NATO but it is eager for closer contacts with Russia, RIA Novosti reported recently.
President Vladimir Putin is commending the developments between the two countries. According to news reports, the Russian president's comments came after a meeting with his Slovak counterpart, Ivan Gasparovic.
"President Gasparovic and I had a detailed discussion of European and global developments. He informed me about certain problems of the emergent new Europe," the Kremlin leader said. "We value Slovakia's balanced stances on key world and European issues," he added. "Russia and Slovakia are both working to buttress the United Nations' central role in maintaining global stability and security," the Russian leader explained.
When questioned as to whether Slovakia is paying less attention to Russia now that it has joined the European Union and NATO and what Russia thinks of that development and what can be done, Putin said: "Slovakia has one thing to compensate for it - that is the Slovak people's attitude to Russia. The Slovak nation is pragmatic in its stance on Russia. We are aware of it, and we hope this pragmatism will survive." 
For his part, Gasparovic said that Slovakia will seek for new legal ways of partnership with Russia. The two state leaders also spoke about Russia-EU relations. Exports to the European Union roughly account for a half of the Russian trade turnover, the Slovak president was quoted as saying.

« Top

TELECOMMUNICATIONS

Orange Slovensko boosts EBITDA

Orange Slovensko, one of the two mobile operators in Slovakia, reported earnings before interest, tax, depreciation and amortisation (EBITDA) worth 8.651bn Slovak crowns (227.3m Euro) for 2004, up 25 per cent, TSAR reported recently.
Overall 2004 revenues from services of the company amounted to 38.9bn crowns. Orange enjoys a 38.5 per cent share on the telecom market in Slovakia for 2004, up 7 per cent year-on-year. The operator provides communication network solutions through its voice and data services. Its signal covers 99 per cent of Slovakia, and is used by 2,360,572 people, according to the 2004 report. The company has been operating in Slovakia since 1997. It was originally called Globtel but in 2002 changed its name to Orange. It is a member of the Orange global telecom group, and operates as the largest GSM network in Slovakia. Orange Slovensko is 64 per cent owned by Orange SSA, majority-controlled by France Telecom, and the remaining stakes are held by private financial investors and the European Bank for Reconstruction and Development.

« Top

TOURISM

SACR launches tourism campaign

The Slovak Agency for Tourism (SACR) promoted Slovakia as a great country for tourists to visit at an exposition held to coincide with the Bush-Putin summit, TSAR News Agency reported.
The exhibition was visited by journalists from the United States, Japan, Russia and Ukraine and other countries arriving in Slovakia to cover the summit. Reporters were issued with publicity material in English and Russian about the Tatra mountains, spas and historical monuments in Slovakia. They were most intersected in the national parks and tourist resorts with recreational facilities especially skiing.

« Top

 

« Back

 


 
Published by 
Newnations (a not-for-profit company)
PO Box 12 Monmouth 
United Kingdom NP25 3UW 
Fax: UK +44 (0)1600 890774
enquiries@newnations.com