The German chemical concern Evonik is building a new plant in Slovenská Ľupča. (source: Courtesy of Evonik)
There is a saying in Slovakia that when the German manufacturing sector sneezes, Slovakia gets a cold.
But it is not just words that underline the close economic links between the two countries – data shows that Germany is both Slovakia’s most important trading partner and its key source of foreign investment.
This tie to Europe’s strongest economy is both a boon and a burden for Slovakia, though.
“In good times, the German economy gives Slovakia a lift, but in times of crisis, as we see today, it can badly affect our economy,” Lukáš Parízek, chairman of the Council of Slovak Exporters told The Slovak Spectator. “And there is not much we can do about it at the moment.”
Any actions which might help, including reform of education or territorial and sector-based diversification of Slovakia’s economy, are long-term in nature, he added.
Close partner
Following the fall of the Iron Curtain, the 1990s were a turbulent period across most of eastern Europe. But German corporations appreciated the relative political and social stability of first Czechoslovakia and later, after the two countries split, of Slovakia and were among the first major investors into the country, Vladimír Vaňo, chief economic analyst with the Globsec think-tank, told The Slovak Spectator.
“The famous story of the mushrooming automotive sector in Slovakia began with a German corporation’s modest gearbox assembly plant, and then grew quickly into the assembly of entire vehicles. The rest is history,” he said.
