Slovakia’s business environment keeps deteriorating

The Business Environment Index falls to 49.6 points and is below half its original starting value for the first time in history.

(Source: Sme)

The business environment in Slovakia has again worsened over the second quarter of this year, while at stake is the most remarkable deterioration in the past three quarters. This is the result of a regular survey among entrepreneurs by the Business Alliance of Slovakia (PAS). The Business Environment Index, compiled based on this survey, fell to 49.6 points, and for the first time in history fell below half of its original starting value. Compared to the last rating, the index fell by 2.22 percent, PAS executive director Peter Kremský informed, as cited by the SITA newswire.

SkryťRemove ad
Article continues after video advertisement
SkryťRemove ad
Article continues after video advertisement

The worst-hit indicator was the Application of the Principle of Equity before the Law (-7.15 percent). The Law Enforceability and Functionality of the Judiciary and the Functionality of the Political System in the State also recorded a similar decline. The level of Corruption in Public Offices (-5.86 percent) has also decreased significantly, declining further from the third quarter of 2015.

Read also: PAS: Slovakia's business environment ranking declines Read more 

“The anti-corruption rhetoric of the government is thus missing its target, as the perception of corruption by entrepreneurs moves ever higher,” said Kremský as cited by the SITA newswire.

The survey also revealed that the workforce shortage is a growing problem for entrepreneurs. This reflected the historically most marked deterioration in the Quality and Availability of Production Inputs and Workforce (-5.78 percent).

SkryťRemove ad

PAS attributes the functionality of the political system dropping to the lowest level since the beginning of 2013 to the election of Ľubomír Jahnátek, a former MP for Smer, as chairman of the Regulatory Office for Network Industries (ÚRSO). This has disappointed expectations of the public that after a scandal with a sharp rise of utility prices, an independent expert, not a political nominee, might be appointed to this position.

On the other hand, businesses view as positives the changes in the use of the virtual cash registers, as their use was liberalised and extended to a wider range of users, and access to sources of financing.

Top stories

News digest: Slovakia marks anniversary of Warsaw Pact invasion

Fire consumes vineyards in Bratislava, another tanker with LNG for Slovakia arrives in Croatia and the President's Office wants to lead by example by cutting its energy consumption.


15 h
The photo Bare-chested Man in Front of the Occupier’s Tank is exhibited almost at the same place as where it was taken.

Post-wedding bliss of the author behind the bare-chested man photo lasted only three days

Exhibition of Ladislav Bielik's photos from 1968 shows life in Bratislava before and after the invasion.


18. aug
Lake Kuchajda in Bratislava.

Weekend: At a big party, Vietnamese community will share their culture with Bratislava

A steam train ride, Pride Košice and other tips for this weekend.


19 h
SkryťClose ad