91996E2849

WRITTEN QUESTION E-2849/96 by Hiltrud Breyer (V) to the Commission (25 October 1996)

Subject: Nuclear energy in the Slovak Republic

1. What is the Commission's view of the risk that in a neighbouring Associated country such as the Slovak Republic the difficult economic and political situation is such that an enormous increase in the financial burden involved in the reconstruction of Bohunice and the retrofitting of Mochovce could have a lasting effect on the citizens of that country?

2. To what extent are the Member States of the EU prepared to accept the losses of tax revenue if the Slovak Republic were to become insolvent if the financial burden of its nuclear policy were to become too great?

Answer given by Mr Van den Broek on behalf of the Commission (12 December 1996)

The Slovak Republic has pursued prudent fiscal, monetary and exchange policies. The general government deficit has shrunk from 7.5% of the gross domestic product (GDP) in 1993 to register a small surplus of 0.5% of GDP in 1995. The current account balance turned from a deficit of 5% of GDP in 1993 to a surplus in subsequent years. 1996 has witnessed a deterioration in the current account as imports of consumer and investment goods have increased considerably. However, the current account deficit is being amply financed by strong capital inflows and as a result official reserves remain at a comfortable level (representing more than 4 months imports in mid-September 1996). While there will continue to be pressure on the current account due to increasing imports of investment goods such as those for the Mochovce project, it would seem reasonable to expect that prudence in fiscal and monetary policies will continue with respect to Slovak government financing of investment in the energy field.