Economic crisis in CEECs

Last update: 02 10 2009

Slovak government has adopted  two anti-crisis packages with 62 social, taxation measures including several initiatives to help small and medium-sized enterprises and also scrapping scheme, applied in coordination with 11 other EU countries. Main aim is to boost economy and ease the impact of economic crisis and preserve jobs via flexible working time arrangements.

“We want to support big projects, so that we also feed the small ones (entrepreneurs),” stressed Peter Žiga, secretary of state of Ministry of Economy when defending measures applied by government.

Two waves of scrapping schemes were broadly criticized and viewed as a support for one ailing sector. Peter Žiga said that it was coordinated action of EU nations and Slovakia followed the example from Germany.

His counterpart Iveta Griačová, board member of American Chamber of Commerce in Slovakia underlined interesting effect of cash for clunckers scheme – it led businessmen to adapt on changes and now there are scrapping scheme for purses, electronics or TVs.

Innovations, R&D are considered as the main drivers of economic recovery and they also boost competitiveness. Iveta Griačová warned we cannot use structural and public money to support development for development, but also transformation ideas to something commercial.

Even though the economic crisis is easing the recovery of Slovak economy depends on development in Germany. Secretary of state does not see the future so pessimistic.