Setting the scene

The division of Czechoslovakia in 1993 has proved more painful for Slovakia than for the Czech Republic: unemployment at the end of 1995 stood at about 14 per cent, though the economy appears to be recovering. Inflation stands at about 7.2 per cent (down from its 1993 high of 23.2 per cent) and GDP grew by 7.6 per cent in 1995. Despite these encouraging signs, foreign investment has been limited (US$730 million by the end of 1995).

The country's investment potential has been undermined by several issues, among them a lack of clarity in tax legislation and changes in the privatisation programme, including official policy which favours domestic over foreign investors. But the main source of uncertainty stems from the country's political difficulties.

The Slovak Republic's political scene since achieving statehood has been dominated by a power struggle between the Head of State, President Michal Kovac, and the Head of Government, Prime Minister Vladimir Meciar. The row between the two, which has resulted in a libel case against the Prime Minister, shows little sign of abating and has badly damaged the country's reputation in the West. A truce is vital if Slovakia is to fulfil its potential and meet its aspirations.

Key economic indicators
Capital	BRATISLAVA
Area (Sq km)	49,036
Population (m)	5.3
GDP/Capita (1995)	US$3, 019
President	Machal Kovac
Currency	koruna /: 1US$ 34.5 (FT 29/05/98)

Interview with President Michal Kovac
Reform's rocky road

Miroslav Maxon, Minister of Finance
Foreign Direct Investment (FDI) in the Slovak Republic

Karol Cesnek, Minister of Economy
Opportunities for investment in the Slovak Republic

Peter Bisák, Minister of Privatisation & Administration of National Property
Goals and policies of the privatisation process

Zora Kominkova PhD & Viktoria Muckova PhD, Institute of Monetary and Financial Studies, National Bank of Slovakia
Re-structuring of the Banking Sector in Slovakia

Marian Sasik, Secretary-General, Bratislava Stock Exchange
Stocking up

Peter Mihok, Slovak Chamber of Trade and Commerce
The privatisation process

Metallurgy, mining and geology
Association of Metallurgy, Mining Industry and Geology of the Slovak Republic

Strategy of the promotion of the entry of foreign investment into the Slovak Republic
Ministry of the Economy

The current economic situation in the Slovak Republic
Brigita Schmögnerová, Minister of Finance