We Should Think About the Future
Last update: 26.02.2010 06:00
The most recent OECD statistics have shown that GDP of OECD member states increased for the first time over the past five quarters, since last year’s June, by 0.8% in 3Q2009. That the global economy has already bounced off the bottom and begins to show the first sings of a moderate recovery is proved not only by the latest statistics and forecasts by international organisations; these expectations concerning future economic development are reflected in the topics that are starting to be discussed at various international forums, up to the level of the heads of state. It holds true for the EU agenda as well.
Discussions on how to help financial institutions or how to use public funds in order to stimulate aggregate demand have been replaced with discussions on the future of the EU economy. Fortunately, the topics at the forefront include such questions as when and how to re-launch consolidation of public finance and what measures to choose in order to provide conditions for a sustainable economic growth. Such priority issues as the growth and employment have again been given a green light; on that account, the most topical issue now is the revision of the Lisbon Strategy, i.e. what measures and at what time should be taken in order to make the EU a strong player in the global economy. The crucial thing is, beyond any doubt, to resume the path of sustainability which can only be accomplished through long-term actions focused on increasing the growth potential and bringing the public finance back into the confines of macroeconomic stability. It is equally essential that this instrument to enhance EU’s competitiveness cannot do without accentuating the social aspect; therefore the employment will be integral to Lisbon Strategy priorities beyond 2010. An important factor affecting the achievement of these goals will be to put even more emphasis on a regional aspect in shaping a coordinated approach under EU Member States’ economic policies.
In order for Slovakia to become a successful component of an EU common priority in developing the growth and employment strategy, it has to further intensify its efforts in two key areas. The first one involves strengthening the role of education, research, development and innovation, as well as further reducing administrative burden on businesses and making the labour market more flexible. The second important area concerns improvements in eliminating regional disparities, yet this issue should not be narrowed down to the utilisation of EU funds only; it should also encompass incentives to encourage an inflow of investment into less developed regions. These areas must be strengthened amidst the consolidation of public finance with the aim of reaching a balanced budget in the next five years. If the Slovak economic policy does not follow these development goals, the country, and its citizens in particular, cannot hope for much good.
František Palko
State Secretary of the Ministry of Finance of the Slovak Republic