CELSI co-founder and professor of economics Martin Kahanec notes in the latest Expert Panel by Denník N, that Slovakia does not currently have the conditions needed to “grow out of debt.”

The Slovak government plans to reduce the public deficit to 4.1 percent of GDP next year and to 3.5 percent by 2027.

The next, fourth round of fiscal consolidation is expected to take a different path – by stimulating domestic consumption, drawing EU funds, and investing in infrastructure, including bridge construction.

However, as CELSI co-founder and professor of economics Martin Kahanec notes in the latest Expert Panel by Denník N, Slovakia does not currently have the conditions needed to “grow out of debt.”

Countries like Ireland or Sweden have managed to reduce their debt-to-GDP ratios through growth in the past, but only under exceptional circumstances and with strict fiscal discipline and structural reforms.

Today’s economic slowdown, weak growth in the EU, demographic decline, and an ageing population make such a scenario unlikely.

“If Slovakia wants to stabilise its debt without suffocating the economy, it must cut unproductive spending, protect investments, improve state efficiency, and support productivity – while preserving social fairness,” Martin Kahanec emphasised.

🔗 Full response (in Slovak) from Martin Kahanec and other economists here: https://e.dennikn.sk/5009269/panel-expertov-ked-budeme-cakat-na-hospodarsky-rast-nebudeme-mat-ani-rast-ani-nizke-deficity/

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