Slovakia will remain poor

The government aims to subsidize household gas prices again using EU funds. Very low investments remain among the reasons for the Slovak economy’s stagnation, with EU funds serving as almost the sole source of public sector capital expenditure. “The country will miss these investments, and countries such as Czechia and Poland, which are investing more wisely, will pull even further ahead of us,” warns Martin Šuster of the fiscal responsibility council RRZ. Low energy prices fail to motivate households to pursue necessary savings. RRZ urged the government to direct EU funds toward investment rather than consumption.

Slovakia has spent just 8% of the €12.8bn in EU funds allocated for 2021–27, half as much as Czechia. With such a slow spending rate, Slovakia risks losing the subsidies, potentially hundreds of millions this year.

(dennikN.sk)