The government goes into minority form: The analyst talks about the decisive impact on the economy, is the recovery plan in jeopardy? – Topky.sk

archival video Matej Horňák, the analyst of Slovenská sporiteľna, revealed his analysis of the current situation. According to him, the economic consequences of the government crisis are also real. Analyst warns of possible risks After last week’s resignation of the Minister of Economy, other ministers of the coalition party Freedom and Solidarity also ended their work in the government. “The government crisis thus determined the subject and direction of the public debate throughout the summer, which to a certain extent diverted attention from the discussion of the next steps necessary to solve the difficult economic situation that Slovakia, as well as the entire EU, is facing. The threat of the collapse of the government, or the minority government , brings with it several risks,” Horňák warns. According to him, these are mainly: – Lower flexibility when taking measures, especially in times of increased uncertainty associated with energy prices that also require quick solutions, – Adoption of laws – for example, the law on the state budget, laws linked to reforms from the Recovery Plan, the use of which can thus be endangered. Although the parties agreed with the subject of the reform or its result, they may not be identified with the way to achieve them. A separate chapter is also the spending limits that got stuck in the negotiation process, – Greater reliance on political negotiations with opposition parties, which creates the threat of significant compromises and ultimately the overall effect of the reforms. Photo gallery (3) Source: Topky/Maarty Better news comes from abroad “At least the news from abroad brings positive news – the German government is proceeding with further assistance to the economy, especially to companies with a high energy demand, which can support German industry and the German economy, and therefore to help the Slovak one as well. However, we cannot do without domestic (or general European) measures,” continues the analyst. According to Horňák, the scenario of early elections cannot be completely ruled out, which also brings a risk for Slovakia, since the stability of the government is one of the areas that international investors and rating agencies monitor. “This would also cause a change of government at the time of the energy crisis, increased inflation, the military conflict in Ukraine and growing disinformation, as well as during the implementation of the new programming period of the European funds or the Recovery Plan. The new government could thus have a diametrically different view of any of these areas and the whole negotiation process (at the national or European level) could start all over again,” Horňák explains. The situation is also complicated by the lack of gas. Even an analyst does not yet know exactly how we will get out of these problems. The situation is all the more difficult because we are also facing the European energy crisis. “The solutions are, of course, not easy. Despite the abundance of gas, in the short term we must reach agreements to protect households from a radical increase in energy prices, reduce gas consumption by saving where it makes sense and will not have a radical impact on the economy or the population, and maximize supplies from other sources,” he added. Photo gallery (3) Illustration photo
Source: Getty Images According to him, another necessary solution is to find a form of aid for the industry, targeted aid in a reasonable amount, to protect employment and competitiveness on the world market. From a medium- and long-term perspective, it is necessary to radically speed up bureaucratic processes in the construction and connection of other energy sources, the search for alternative suppliers on world markets and the introduction of more efficient technologies (e.g. insulation and replacement of heat sources in households, replacement of outdated technologies in industry…) . “The question for political discussions at the European level remains whether or not to allow states to draw down old European funds in order to ensure energy security and market protection. Last but not least, the strength of the European Union lies in its unity, which can also pay off for us with a unified attitude and unified measures adopted in in these times of crisis,” Horňák thinks.