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Analysts: Debt Problems in Eurozone Will Challenge Slovakia in 2011
Monday 03 January 2011 Zoom in | Print page
Bratislava, January 3 (TASR) - The Slovak economy will face a number of challenges in 2011. The consolidation of public finances will be among the internal ones, while the potential deepening of problems within eurozone members could affect it from the outside, Postova Banka analyst Eva Sadovska has told TASR.
"I view the possible outbreak of debt problems within other eurozone members as a possible risk for 2011. The deepening debt crisis could weaken the euro even more significantly against the dollar," she added.
According to Sadovska, a weaker euro would be beneficial for exports, but would make imports from 'dollar-countries' more expensive. People would feel this in the case of holidays and internet shopping. "Many commodities, for example crude oil, are traded in dollars, so they are becoming more expensive for Europeans when re-calculated into the weaker euro. This could have an influence in the form of higher energy prices, but also on ordinary goods in the shops," she said.
Volksbank analyst Vladimir Vano expressed his conviction that eurozone membership will be beneficial for the country despite the current problems. He pointed out that Slovakia is able to have a say when specific decisions are made, as it is represented in the European Central Bank (ECB). "Slovakia has a fully-fledged voice in the [ECB] managing board via the Slovak central bank (NBS) governor," he stated.
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