Economy remains unaffected for now

Rating agencies are closely watching political developments in Slovakia

(Source: TASR)

Political stability is what investors and companies list with the euro and the location in central Europe among the advantages of investing in Slovakia. Now stability has been shaken by the political crisis triggered by the murder of investigative journalist Ján Kuciak and his fiancée Martina Kušnírová. It will be only seen whether the governmental reshuffle orchestrated by Peter Pellegrini, the new prime minister and close ally of resigned prime minister Robert Fico, will be enough to alleviate the political situation.

“I can ascertain that this government will maintain its clear pro-European orientation, that this will be the government to continue in good started-up projects,” said Pellegrini on March 17.

Political crisis does no good for the economy

The tense and uncertain political situation is not good news for any economy.

“Long-term and serious political instability very often leads to the departure of investors from the country or the disinterest of potential investors,” said Jana Glasová, economic analyst of Poštová Banka. “Its consequence is an increase in unemployment, the worsening of the financial situation in households and a general slow-down of economic growth.”

For now the political crisis has not resulted in any such negative implications.

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

Get daily Slovak news directly to your inbox

Theme: Vražda novinára Jána Kuciaka

Read more articles by the topic
This article is also related to other trending topics
Peter Pellegrini, Ján Kuciak

Top stories

The big testing: When and where to show up, and what if I don't want to? (FAQ)

Here is what we know about the practicalities of the nationwide testing so far. Testing also applies to foreigners and diplomats in Slovakia.

Pilot testing in Bardejov

The big test is upon us. What are we to do?

For a foreigner living in Slovakia, there is yet another concern.

Testing is impossible to carry out as planned, president says

President Zuzana Čaputová asked the government to reconsider measures for people who do not get tested, many will not get a chance.

President Zuzana Čaputová met with the representatives of the armed forces.