Slovakia today, instead of focusing on systemic measures to grow the economy, is preoccupied with domestic political issues.
With President Donald Trump’s return to office, it has become abundantly clear that the link between politics and economics is both essential and decisive — even if it may not have seemed so until now. However negative this connection might appear today, the truth is that it has always existed and always will.
Today, the headlines are dominated by the use of the economy as a tool of pressure. The imposition of tariffs, economic sanctions, suspension of international agreements, or the takeover of control over the Panama Canal are among the most frequently discussed topics in global trade relations. Everyone seems surprised — but they shouldn’t be. The fault lines of international trade have been shifting for several years now, especially in our region since the war in Ukraine began. It will soon be three years, and in Slovakia, we are still only debating how to prepare for these changes or waiting for things to “go back to normal.”
Regardless of when or how the war ends — ideally as soon as possible — I’m afraid the international trade landscape will never return to its former state. Those who have diversified their economies, whether geographically or by sector, will be the ones to benefit. In diplomatic language, this is referred to as the “new normal.” Wise leaders seek to turn disadvantage into opportunity.
Unfortunately, this does not currently appear to be the case for Slovakia. Instead of pursuing supportive and systemic economic growth policies, the country — across all levels of society — is focused on internal political disputes. The European Union is waiting to see what happens in America, while the USA continues step by step to push through its economic ambitions, even as our industry and European competitiveness continue to decline.
At the Slovak Exporters Council, we have long argued that the economy should be closely linked with politics — but in our case, primarily in the sense that politics should serve the economic interests of the country, both domestically and internationally.
More importantly, this linkage must be built from the bottom up — not the top down — because we’ve seen where top-down European megatrends, like the green economy agenda, have led us when implemented without adequate dialogue with industry and the business community.
This year marks the 30th anniversary of the WTO. Perhaps we are on the cusp of changes in international trade that will shape the coming decades. We should strive to be part of the solutions and policy proposals — because if these are once again crafted without our input, others will be the ones to benefit.
At present, the EU’s foreign trade portfolio is under the supervision of Slovak European Commissioner Maroš Šefčovič. With the right coordination with our government, this could be a unique and unrepeatable opportunity for Slovakia — a position from which we can profit not just politically, but above all economically, since Slovakia is fundamentally dependent on foreign trade.
Source: Lukáš Parízek, Chairman of Council of Slovak Exporters, for HN
