Slovakia adopted the euro 15 years ago.  How did he (not) help her?

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.

Half Point/Shutterstock

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.

FornStudio/Shutterstock

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 Tradingview.com

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.

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