Slovakia, Poland, the Euro,

Slovakia is essentially a mini Poland but fiscally and currency-wise more like Finland, because Slovakia uses the euro, has lower state debt than Finland, and a population that generally has very little private debt. The banks lend money derived from local deposits and are healthier than their western counterparts.

Slovakia adopted the euro in 2009 did suffer a recession that year, but comparable to the one that hit the neighbouring Czech Republic, which kept its koruna independent currency. Large foreign investors such as Volkswagen, PSA, Kia, say they decided to expand operations in Slovakia because there was no currency risk with the destination markets.

Keeping an independent currency may be a desperate stabilisation tool for a country that is crisis hit and uncompetitive, but for Slovakia the currency union helps its exports and further economic integration with Austria and Germany.

In Poland the zloty’s sudden decline is putting economic growth at risk as it squeezes the 700,000 Poles – part of a nascent middle class – who took out mortgages denominated in foreign currencies, mostly Swiss francs. So far, people are making their payments, but as the zloty continues to fall against the franc there is a growing worry that it could choke off consumer spending.

Such a fear does not exist in Slovakia as there are no mortgages denominated in foreign currencies so this significant risk that is a problem for both Poland and Hungary does not exist in Slovakia...

The next election is unlikely to produce an anti-business government as even the left is committed to Slovakia's integration with the eurozone.

Slovakia vs. Czech republic - Economic development

Basically Slovakia had an abrupt crisis with a sharp contraction but also an equally large improvement.

Zdenek Tuma, the governor of the Czech National Bank, said being in the euro had helped spare Slovakia the worst of the economic disruption that affected the rest of the region including his country.

For example Slovakia’s cost of borrowing on international markets was cheaper than for the Czech Republic.

Slovakia’s economy is forecast to grow 3.1 per cent in 2010, far greater than the 0.3 per cent forecast by the Czech finance ministry.

As growth returns, investors are trickling back, with some saying they are tempted by the prospect of avoiding currency risk. “The euro allows us to make long-term plans and it eliminates exchange rate risks caused by the volatility of the Slovak crown,” says Vladimir Machalik, a spokesman for Volkswagen Slovakia, which is starting production of a new small car in its factory outside Bratislava.

In a further sign of confidence Taiwan’s AU Optronics signed a €191m agreement last month to open an LCD television component factory in Slovakia.

Although Slovak workers have become slightly more expensive than those of Poland and Hungary, they are still much cheaper than their rivals in western Europe, and investors already in the country are unlikely to make decisions to relocate based on possibly temporary changes in exchange rates.

Politically, joining the euro has proved to be a coup for Robert Fico, the prime minister. A survey shows that almost 80 per cent of Slovaks approve of their new currency, which Mr Fico has called Slovakia's “shield”.

It also proves that despite his faults Robert Fico is a commited left of centre politician that agrees with the overall development strategy of Slovakia, but wanted to make sure that where there are market failures or lack of competition this is rectified and that there are real rules in the game.

However, Czechs have maintained their reservation about rushing towards the common currency. Mirek Topolanek, former prime minister and leader of the centre right Civic Democratic party, says the Czech Republic may be ready in 2015 to begin discussing joining the exchange rate mechanism, a precursor to joining the euro.

But Czech businesses do not seem to share this assessment. “We (Czech republic) need the euro as soon as possible in order to be able to address the current problems caused by the world financial crisis,” says Jaroslav Cerny, spokesman for Skoda Auto, a Volkswagen subsidiary.

“A failure to introduce the euro may drive not only our current suppliers, but also all potential investors, out of the Czech Republic.”

Vaclav Havel becomes a Bratislava citizen

Václav Havel, the former president of Czechoslovakia, dissident and one of the key figures of the Velvet Revolution that toppled Communism in the former federation has become an honorary citizen of Bratislava. The Slovak capital granted him honorary citizenship on the occasion of the 20th anniversary of the fall of the totalitarian regime for his fight for freedom, democracy and assisting in the process of Slovakia's integration into Europe.

The great statesman and philosopher/king Václav Havel said that he respects the award all the more after discovering the personalities who have received it. He has had a long and and enduring relationship with Bratislava, whose people he said he considers very amiable both while he was in office and after his retirement from active politics.

He characterised personality as uniqueness of the human soul and deeds, and as what differentiates one human being from his fellows. Another awardee was the first Austrian Ambassador to Slovakia, Maximilian Pammer. Havel and Pammer received their awards in person.

Havel will receive it on the occasion of the 20th anniversary of the fall of communism in Czechoslovakia, which Slovaks and Czechs mark on November 17.

The resistance to the communist regime's excesses were very much felt in Bratislava as well as Prague. A mass demonstration took place on Hviezdoslav Square in downtown Bratislava and then moved to the Square of the Slovak National Uprising) SNP. Students presented various demands and asked the people to participate in the planned general strike for Monday, November 27. A separate demonstration demanding the release of the political prisoner and christian activist Ján Čarnogurský (the later Prime Minister of Slovakia) took place in front of the Palace of Justice. Alexander Dubček delivered an address at this demonstration – his first appearance during the Velvet Revolution. As a result, Čarnogurský was released on November 23.

"The diplomas will be handed at a ceremonial meeting of the Bratislava City Hall on the occasion of the 20th anniversary of the fall of the totalitarian regime. Its preliminary date is November 18, 2009," the City Hall said in a statement.

Havel, a playwright and a leading dissident under the former communist regime, was the last Czechoslovak president (1989-92) and the first Czech president (1993-2003).

Even under the communist regime he was known as one of the most promitent thinkers and human rights fighters. Havel contributed to the fall of communism in 1989 to a great extent.

In the past, Havel was repeatedly nominated for the Nobel Peace Prize.

Three years ago, Havel was presented with an honorary doctor's degree in Bratislava on the occasion of his 70th birthday.

Last year, the Slovak premiere of Havel's latest play Leaving was staged in the Slovak National Theatre in Bratislava.