The euro celebrates 10 years in Slovakia. His opinion is far from clear – Journal N

The euro celebrates 10 years in Slovakia. Its rating is far from clear

Although the euro has been "only" for more than nine years in Slovakia, in reality exactly 10 years have passed since July 8, when Slovakia finally joined the European currency project. That day, the exchange rate of the crown against the euro was fixed. So what is the experience of Slovakia with the euro after 10 years? A word is ambiguous. Just like the neighboring Czech Republic which, despite some commitments, does not agree to the adoption of the euro.

How does Slovakia perceive the euro? An opinion poll conducted by the MNFORCE for TopForex showed that 7 in 10 Slovaks are satisfied with the euro. Paradoxically, however, more than half of the respondents would return to the Slovak crown. The seemingly paradoxical situation – when more than half of the population wants and does not want the euro – has some explanations.

The advantages and disadvantages of the common currency are also strong and most Slovaks would benefit from both (though practically impossible). On the benefits side, the easiest way to travel is to not need currency exchange and price clarity and comparability in Slovakia abroad. In addition, economists on the plus side advise simplifying the business and business environment, zero exchange rate risk for investors, and more favorable terms for better ratings and a cheaper debt service. I would add that the adoption of the euro also increases the diplomatic weight when Slovakia participates in a meeting of a selective country club that makes decisive decisions for the whole union.

Among the disadvantages of Slovaks are mainly the increase of goods and services and the obligation to pay the debts of other countries in the zone. the case of Greece. These include additional macroeconomic and monetary risks, as well as the fact that monetary policy trends in the euro area are mainly based on "heavyweights" such as Germany and France. Members of the euro zone are practically giving up their sovereignty to join the eurozone, which is likely to come to light because of the impossibility of devaluing the currency (as in Greece).

The pearl of the survey the young (18-29 years old) and vice versa are the oldest (over 61 years old). Under normal circumstances, this should be exactly the opposite. However, as confirmed by other surveys, young people are easily influenced (in this case very pleasant) by a nationalist rhetoric without practical experience of the Slovakian currency. And, on the contrary, older people know how to compare and appreciate the many benefits of the euro

What do the markets say? At the beginning of the year, the euro survived a vertiginous growth, supported by a combination of good news: unemployment and record growth, a move towards targeted inflation and strong exports. Since then, circumstances have worsened, especially for the terrible economic war with the United States following the imposition of tariffs and threats of countermeasures

. ambiguity of the Slovak experience also reflects the debate on the euro in the Czech Republic. She did not move too late. Most of society is against the recent poll, and the emerging government is relatively eurosceptic on this issue, so we can not expect to take steps to adopt the euro. It therefore seems that Slovakia will remain out of the V4 despite the undisputed advantages of the new currency in the euro zone for a long time