The debt crisis in the EU - possible solutions and position of the Slovak Republic

Dátum: 18.07.2013

Slovakia participates in the financial aid program to several indebted EU states. The public should therefore have information about what changes are occurring in these economies. Slovakia should also actively join the discussion on what further changes are necessary for the sustainability of public finances and for strengthening their competitiveness. Transforming the overly indebted countries into competitive and prosperous economies with sustainable public finances is in fact crucial for the effective use of investment, which is in the form of financial assistance to failed states from involved members of the euro area, including Slovakia.

As part of the INEKO project titled “The debt crisis in the EU – possible solutions and position of the Slovak Republic”, studies are continuously being created with respect to reform process in indebted economies.

They contain an overview of relevant indicators of economic development in these countries, as well as reform measures, which have been implemented as a solution to the crisis with financial assistance from other euro area member states. The studies aim to provide the public with information about what changes are happening in indebted economies and indicate what further changes are necessary for the sustainability of public finances and for strengthening the competitiveness of these countries.

We believe that it is crucial for the public, which ultimately gives money to rescue indebted countries, to have an overview of the ongoing changes and to be able to form an opinion about the effectiveness of the use of rescue resources. Otherwise, there is an increased risk in the possibility that the uninformed public will reject a proposal of providing help in the future even if the aid would be effective for Slovakia or other Eurozone countries.

The project aims to strengthen the expertise in a discourse about possible solutions to the debt crisis in the EU and thereby help to optimize SR decisions in this area. The project is conducted with the financial support of Konrad Adenauer Stiftung foundation and the Open Society Foundations.