Spectator on facebook

Spectator on facebook

Conservative Institute critical of euro-zone entry

THE M.R. Štefánik Conservative Institute says that Slovakia’s adoption of the euro under current conditions could bring more disadvantages than advantages to the country.

Institute analyst Peter Gonda said that even if Slovakia fulfills the five Maastricht criteria for entry to the euro-zone – the criteria set debt, inflation, interest rate and budget deficit caps - it still cannot be said to be ready for euro adoption.

According to Gonda, the Maastricht criteria give protection to existing euro-zone members who do not want to accept a country that could threaten their financial stability. They say nothing about whether a country is prepared to adopt the euro or about the functionality of the euro-zone itself.

The Štefánik Institute therefore suggests that an additional seven criteria should be considered that would reflect the potential benefits of euro-zone membership for a country.

According to Gonda, Slovakia’s entry to the euro-zone could be risky with regards to the unreformed old-age pension schemes of older EU members.

Moreover, membership in the EU monetary union does not create conditions for Slovakia’s higher economic growth, Gonda said.

The Institute is also concerned about the ongoing efforts of large EU member states to achieve harmonization in various areas including tax and welfare systems, which could restrict Slovakia's competitiveness.

Gonda concluded that Slovakia could profit only from the lower transaction costs resulting from entry into the euro-zone.

Top stories

Crematorium in Bratislava is an architectural revelation Photo

Those who have experienced farewells in other crematoria know what makes it special. Now the best work by the architect Ferdinand Milučký is getting a monograph

Crematorium in Bratislava by architect Ferdinand Milučký

What kind of expectations do some Slovaks have for world leaders?

Among EU member states, opinions of the United States declined in all but two — Poland (which makes some sense) and Slovakia (which does not).

Donald Trump

Crates and boxes. Slovaks discover new ways of grocery shopping

Farmer’s boxes are gaining customers in Slovakia as people slowly become more conscious about quality and the origin of the food they eat.

Foreigners: Top 10 events in Bratislava Video

Tips for the top 10 events in the capital between January 19 and January 28, plus regular services in different languages, training, temporary exhibitions and highlights of the year.

Scandi 4