In 2009, Slovakia got rid of its independent monetary policy. This included the national currency, which thus became history. In this way, the euro replaced the Slovak koruna.
After fifteen years, it is time to summarize how much our southern neighbors benefited from introducing a common currency and whether it was the right move. Local businessmen welcomed the decision to replace the Slovak koruna with the euro. They clearly enjoy the benefits of joining the European Monetary Union.
– says Martin Hostak, Secretary of the Republican Employers Association.
Lower costs
According to Hostak, joining the monetary union stabilized the business environment. By eliminating currency fluctuations, the planning and management of financial flows was simplified, which had a positive impact on operational security and competitiveness. The euro has greatly simplified business transactions for companies, as they can make payments and trade without the need for currency conversion.
– Hostak explains.
He also adds that companies incur fewer costs related to exchange rate risks and transaction fees. This means that costs related to international trade may decrease, which may increase exports and imports of Slovak companies. At the same time, it opens the door for companies to the larger Eurozone market, which can lead to increased business opportunities and growth. Access to a broader market can help companies achieve greater economic scale and increase their competitiveness.
Evolution of the euro exchange rate against the dollar
Less risk
Miriam Filova of the Employers' Association has a similar assessment of the common European currency.
Meanwhile, Veluva points out this Both companies and citizens avoid exchange rate risks, which eliminates currency conversion costs. The single currency increases price transparency and facilitates comparison of the costs of goods and services between eurozone countries.
Comparison with neighbors
However, Martin Vlaszynski, an analyst at INESS, is less enthusiastic about abandoning the Slovak crown From representatives of Slovak business.
– says Vlashinsky.
The analyst also adds that although we can talk about positive impacts, for example in the form of lower exchange rate risk costs, Eventually, all of Central Europe came into a common economic space around Germany. Therefore, in his opinion, Germany's economic development and energy and climate policy, rather than monetary policy, played a greater role in the lives of most companies.
But at the same time, Vlaszynski raises questions in the context of his assessment of the value of the euro in Slovakia over fifteen years.
Danger to the future
However, Velova adds, adopting the euro would mean losing its monetary policy. EU countries face specific economic challenges, so adjustments to monetary policy must be made very wisely – for example, when it is necessary to stimulate the economy or deal with other specific problems such as inflation.
Finally, Vlaschinsky also points out Threats that may arise in the long term.
– reminds the analyst.
In fact, the eurozone has chosen a path where the economically stronger countries guarantee the debts of the economically weaker countries. This arrangement rewards irresponsible behavior on the part of politicians and punishes those who must deal with the consequences.
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