Slovakia - Economic Reform

Short-term priorities:

• establishment of medium-term economic policy priorities and joint assessment within the framework of the Europe Agreement;
• implementation of policies designed to tackle internal and external imbalances and to sustain macroeconomic stability;
• progress on structural reforms and on market-driven restructuring in the enterprise, finance and banking sectors;
• further conversion of energy-intensive heavy industries.

Assessment (October 1999)

These priorities have been achieved only in part.

Slovakia has adopted measures to tackle external and internal imbalances through cost-cutting and revenue-raising measures. It has also established a medium-term economic policy and a joint assessment framework. Little progress has been made on structural reform, the restructuring of the financial and banking sectors or the conversion of energy-intensive industries, however.

Assessment (November 2000)

Macroeconomic stability has improved. The restructuring of enterprises and the privatisation of banks are proceeding. Tax measures have been introduced to stimulate investment. New insolvency procedures are being applied. Little progress has been recorded in the insurance sector.

Assessment (November 2001)

The macroeconomic stability of the country has improved since last year. Good progress is being made in restructuring businesses and banks and privatising the insurance company, a former State monopoly. Insolvency procedures, measures to promote investment and mechanisms for recovering bad debts have been adopted.

Assessment (October 2002)

The last State-owned banks and insurance companies have been privatised, so that the restructuring of the financial sector is nearly complete.

Assessment (November 2003)

Please refer to the fact sheets on the adoption of the Community acquis.

Medium-term priorities:

• promoting the competitiveness of the private sector and in particular SMEs;
• completing the privatisation process;
• liberalising prices and rents;
• setting up an annual budgetary surveillance procedure with a view to bringing systems of information, monitoring and auditing public finances into line with those of the European Union;
• pursuing reform of the funding of social security.

Assessment (November 2001)

Competitiveness has been promoted in the private sector. Although the privatisation process is not complete, it has progressed. Prices and rents are being liberalised. An annual surveillance procedure has been set up. The reform of the funding of social security is continuing.

Assessment (October 2002)

There has been some progress towards ensuring the medium-term sustainability of public finances and improvements have been made to public finance management. Some reforms have been adopted in the health and pension systems, but most of the measures required to achieve fiscal sustainability are still outstanding. The economic priorities of the Accession Partnership have been partly met.

Assessment (November 2003)

Please refer to the fact sheets on the adoption of the Community acquis.

Following the signing of the Accession Treaty on 16 April 2003, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia acceded to the European Union on 1 May 2004.

REFERENCES

Council Decision 98/262/EC of 30.03.1998Official Journal L 121 of 23.04.1998

Council Decision 1999/853/EC of 06.12.1999Official Journal L 335 of 28.12.1999

Commission Opinion COM(97) 2004 finalNot published in the Official Journal

Commission Report COM(98) 703 finalNot published in the Official Journal

Commission Report COM(1999) 511 finalNot published in the Official Journal

Commission Report COM (2000) 711 finalNot published in the Official Journal

Commission Report COM (2001) 700 final - SEC(2001) 1754Not published in the Official Journal

Commission Report COM(2002) 700 final - SEC(2002) 1410Not published in the Official Journal

Commission Report COM(2003) 675 final - SEC(2003) 1209Not published in the Official Journal

Treaty of Accession to the European Union [Official Journal L 236, 23.09.2003]

Last updated: 19.11.2004