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.
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