SLOVAKIA COUNTRY PROFILE: STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS

Matt White

August 10, 2015

Liberty University PPOG 506 – Introduction to Geopolitics and International Diplomacy

Locale

            Slovakia is a small landlocked nation sandwiched between Western Europe and the rest of the European Union and the Russian sphere of influence. The Danube River forms a small portion of its boundary with Austria to the west and a larger part of its boundary with Hungary to the south. The Czech Republic and Poland border Slovakia to the north. Eastern Slovakia ends with a 97 km border with the Ukraine.[1] Slovakia, Poland, Romania and Hungary are the only four members of the European Union to border the Ukraine, the largest country by area entirely in Europe. Slovakia is the only Eurozone nation to border the volatile Ukraine.

Economic Situation

The economy of Slovakia is relatively stable and has been improving since it joined the Eurozone in 2009. The economy of Slovakia is driven by a trade surplus with most exports going to the EU. Slovakia’s economy is service and industry dominated, with very little agriculture. In Gross Domestic Product (GDP) per capita, 2014, Slovakia’s global ranking of 61^st at $27,700 ranks ahead of each of its neighbors except for the Czech Republic, which is 59^th. In this statistic, Slovakia is well behind other Eurozone nations, however in comparison, the cost of living in Slovakia is quite low. However, in 2014, unemployment was at 13.2% though steadily falling, and per 2012 data, 20.5% of the population of Slovakia was below the poverty line.[2] The 2015 Index of Economic Freedom ranks Slovakia 50^th, behind each neighboring country except for the Ukraine.[3] Slovakia has two personal income tax brackets, 25% for those earning over €35,022 per year[4] or 19% otherwise. Offsetting the reasonable income tax rates, Slovaks pay a 20% sales tax and a 48.6% Social Security rate, consisting of a 13.4% employee and 35.2% employer contribution. To help lower the budget deficit and slow the growth of government debt, all personal and corporate taxes faced modest increases since 2012. In that same timeframe, the combined Social Security rate has more than doubled. [5]

            Slovakia has been at odds with the rest of the Eurozone in dealing with the Greek Debt Crisis. Prime Minister Robert Fico has affirmed that Slovakia will refuse to contribute towards a Greek bailout, of which Slovakia’s share would be €2 billion. If Greece fails in its commitments to the rest of the Eurozone, Fico claimed that “Slovakia will be in the first line of countries demanding that Greece leave the Eurozone.” Fico scolded that Greece needs to take responsible economic measures to deal with its debt, much as Slovakia has.[6]

Cultural and Social Situation

Slovaks are proud of their identity as Slovaks and distinct from Czechs, and though similar and with a shared history, Slovak nationalism led to the amicable Velvet Divorce, the breakup of Czechoslovakia in 1992. Slovak cultural identity is very unique from Czech, with a distinct, but mutually intelligible language. Slovakia is fairly homogenous. 80.7% of the population is Slovak, while the next largest ethnic group is Hungarian, at 8.5%.

Slovaks are generally more religious and conservative than their European neighbors. A 2001 census revealed that 68.9% of Slovaks self-identify as Roman Catholic, and 13.0% are without religious affiliation.[7] In comparison, a 2010 survey revealed that 85.3% of Slovaks identify as Christian but only 23.3% of Czechs, while 76.4% of Czechs are non-religious.[8] On the issue of same-sex marriage for instance, in 2014, Slovakia adopted a constitutional amendment limiting marriage to one man and one woman. The Czech Republic grants civil unions, common in much of the EU where full same-sex marriage is not recognized.

Slovakia is in a cultural tug of war between the West, Russia, and Slovak nationalism. Slovakia is officially aligned with the West as a member of the EU, Eurozone, and NATO. However, Russian influence is still quite strong and Slovakia has retained its historic cultural ties with the East. Religiously, Slovakia may be strongly aligned with Rome, however linguistically, their Slavic language is culturally eastern. In the Czech Republic, monuments leftover from the years of Soviet domination were torn down and repurposed after 1989’s Velvet Revolution. For instance, the interior of the Vitkov Monument in Prague, which formerly housed the mausoleum of communist president Klement Gottwald, was turned into a museum that vilifies the oppressiveness of communist Czechoslovakia and glorifies their new democracy and Vaclav Havel. In contrast, towering over Bratislava is the Slavín Monument. Slavín was built as a Soviet memorial and cemetery honoring the Soviet troops that died in the “liberation” of Bratislava.

Governmental Atmosphere

The official name of the country is the Slovak Republic, though local Slovaks and much of the world calls it Slovakia. Slovakia is a parliamentary-presidential democracy, with the prime minister serving as head of government and the president as head of state. The National Council, known as the Government of Slovakia or parliament, serves both executive and legislative functions. Members of Parliament are elected every four years and the President of Slovakia is popularly elected every five years. As the Head of Government, the prime minister is not du jure but du facto the most powerful government official. However, the prime minister is appointed directly by the president, as is his cabinet, on advice of the prime minister. Any minister is eligible for appointment. In addition to appointment powers, the President of Slovakia is responsible for foreign relations, signing treaties, and serving as commander-in-chief. If the presidency is vacated, the Prime Minister takes on dual responsibility.[9]

In the most recent National Council elections, March 10, 2012, the Direction – Social Democracy (Smer-SD) party won an absolute majority, with 83/150 seats. Smer-SD has been gaining in voter support and parliamentary representation. After the 2010 elections, Smer-SD won 62 seats, up from the 50 seats won in 2006 and 25 in 2002.[10] Smer-SD is a populist left-leaning party, and is a member of the multi-party coalition, the Party of European Socialists. Representing Smer-SD, Prime Minister Robert Fico returned to the office of Prime Minister after previously serving as the head of government from 2006-2010. Though towards the left on economic policy, Fico and Smer-SD have been more nationalistic and conservative on social issues.[11] President Andrej Kiska, a former businessman, won election in 2014 as an independent candidate against his main opponent, Prime Minister Fico.[12] In contrast to the more nationalistic Fico, Kiska is an advocate of further integrating Slovakia with NATO and the EU. 

Legal and Geopolitical Issues

Despite any lingering nostalgic ties with Russia, in a Slovakian referendum, the citizens passed and adopted into the constitution the “Manifesto of the Government of Slovakia” which affirms Slovakia’s position in the EU and NATO. The manifesto states:

“The main guarantee of security for the Slovak Republic stems from its membership in the North Atlantic Alliance (NATO). Maintenance of strong trans-Atlantic links remains in Slovakia’s vital interest. The Government will contribute towards the success and proper functioning of both groupings, the EU and NATO, for they truly underpin Slovakia’s international position.”[13]

There is a growing anti-NATO movement in Slovakia. In the spring of 2015, anti-NATO protesters took to the streets of Bratislava against plans to build a NATO base in eastern Slovakia, though it would be half manned by Slovak troops.[14] The anti-NATO sentiment is not a minority faction, as a 2014 poll shows that 74% of Slovaks are opposed to NATO troops in Slovakia.[15] Prime Minister Fico has strongly opposed the stationing of NATO troops in Slovakia, stating that he will initiate a referendum if the NATO plans proceed, and will continue in opposition even if it cost him his political career. In the meantime, President Kiska is moving forward in talks with NATO to build a logistics depot in eastern Slovakia.[16]

Prime Minister Fico is vocally opposed to the EU’s economic sanctions against Russia in light of the conflict in the Ukraine. As a response to the sanctions, Russia imposed a food import embargo against the EU and US. Fico claimed that the sanctions are mutually harmful to the entire region. President Kiska, however, is a voice for the pro-West faction of the nation. Kiska responded to Fico’s view, remarking that although there might be economic loss, Slovakia must be able to accept it. “Business interests must not stand above the fundamental values of freedom and democracy.”[17]

In the spring of 2014, the EU agreed to terms with the Ukraine on the building of a natural gas pipeline through Slovakia to Western Ukraine. The pipeline became operational in the fall, supplying at a rate of 6.7 billion m³ per year, with a design capacity of up to 10 billion m³ annually. [18] The pipeline, operated by a Slovak firm Eurostream,[19] was a response to the Ukraine’s urgent request for assistance after Russia stemmed the gas flow to Western Ukraine and gouged prices.

Action Plan

            Slovakia is caught in the middle of the civilizational struggle between east and west. Slovaks recognize the importance of their inclusion into the EU, Eurozone, and NATO for their economic security and national defense. However, a growing sense of nationalism has caused Slovakia, reflected in the rhetoric of Prime Minister Fico, to antagonize the EU and NATO and to alienate themselves against allies that are critical for Slovakia’s national survival. Two specific concrete actions are recommended in order to strengthen Slovakia’s ties with the West and which would still be acceptable to the Slovak majority.

Regardless of where one stands on the EU’s sanctions against Russia and whether or not they do more harm than good to Slovakia’s economy, the gas pipeline to the western Ukraine is widely supported as a mutually beneficial transaction between the two nations. The pipeline could be expanded in order to supply a larger percentage of the Ukraine’s need. Slovakia could expand business and trade ties with the Ukraine specifically in Slovakia’s economic stronghold, manufacturing and automobiles. Increased EU-Ukraine trade would not just benefit all economically, but could increase stability in the country across Slovakia’s eastern border.

            The hesitancy of the Slovak majority to accept a NATO base on their soil is understandable, given the history of foreign troops invading their land. However, to defend their civilizational fault line, close Slovakian ties within NATO are essential. One simple solution to meet Slovakia’s defense needs in a way that would be more acceptable to the national mood would be to allow the building of a NATO base in eastern Slovakia, but staff it only with Slovak NATO troops until the day comes where full NATO forces are required for Slovakia’s survival.

            An assertive Russia is reawakening. Fanatical Islamist movements are threatening the globe. In the clash of civilizations, it is imperative that the west remain strong and united. It is essential that Slovakia contribute towards Western unity and not alienate itself, which it can accomplish without having to sacrifice cultural pride.

References

Andrej Kiska, President of the Slovak Republic. “President of the Slovak Republic – Biography.” President of the Slovak Republic. Accessed July 30, 2015. https://www.prezident.sk/en/page/bio/.

CTK English-Language News Service. “Most Slovaks against NATO base in their country – poll.” CTK English-Language News Service. September 27, 2014. Accessed July 29, 2015. http://search.proquest.com.ezproxy.liberty.edu:2048/docview/1565684848?pq-origsite=summon&accountid=12085.

Czech News Agency. “Slovak president rejects PM’s negative view of Russian sanctions.” Prague Post. August 15, 2014. Accessed July 29, 2015. http://www.praguepost.com/eu-news/40949-slovak-president-rejects-pm-s-negative-view-of-russian-sanctions.

Election Resources. “Presidential and Legislative Elections in Slovakia – Results.” Election Resources. Accessed July 30, 2015. http://electionresources.org/sk/nrsr.php?election=2012&region=.

European Union. “Income taxes abroad – Slovakia.” European Union. Updated June 29, 2015. Accessed July 30, 2015. http://europa.eu/youreurope/citizens/work/taxes/income-taxes-abroad/slovakia/index_en.htm.

Government of the Slovak Republic. Manifesto of the Government of the Slovak Republic. May 2012. Accessed July 29, 2015 http://www.vlada.gov.sk/data/files/2169_manifesto-entrans.pdf.

Heritage Foundation. “2015 Index of Economic Freedom.” The Heritage Foundation.” Accessed July 30, 2015. http://www.heritage.org/index/ranking.

Kapusany, Velke. “Slovakia begins gas supplies to Ukraine – Naftgogaz.” Interfax, September 2, 2014. Accessed July 29, 2015. http://www.interfax.com/ftproot/files/content/pdf/Russia&CIS_Energy_daily.pdf.

Liptáková, Jana. “Fico: No debt relief for Greece.” Slovak Spectator. July 23, 2015. Accessed July 30, 2015. http://spectator.sme.sk/c/20059010/fico-no-debt-relief-for-greece.html.

MENA Report. “Slovakia, Ukraine: UKRAINE, SLOVAKIA ink gas supply deal.” MENA Report. May 7, 2014. Accessed July 29, 2015. http://search.proquest.com.ezproxy.liberty.edu:2048/docview/1521823295?pq-origsite=summon&accountid=12085.

Pew Research Center. “Table: Religious Composition by Country, in Percentages.” Pew Research Center. December 18, 2012. Accessed July 30, 2015. http://www.pewforum.org/2012/12/18/table-religious-composition-by-country-in-percentages/.

Slovak Spectator. “Anti-NATO Protesters gather in front of U.S. Embassy in Bratislava.” Slovak Spectator. March 12, 2015. Accessed July 30, 2015. http://spectator.sme.sk/c/20056524/anti-nato-protesters-gather-in-front-of-u-s-embassy-in-bratislava.html.

Slovensko. “Religion in Slovakia.” Slovensko. Accessed July 30, 2015. http://www.slovensko.com/about/religion.

Terry, Chris. “Direction – Social Democracy (Smer-SD).” The Democratic Society, posted May 19, 2014. Accessed July 30, 2015. http://www.demsoc.org/direction-social-democracy-smer-sd/.

Trading Economics. “Slovakia Personal Income Tax Rate | 1995-2015 | Data | Chart | Calendar.” Trading Economics. Accessed July 30, 2015. http://www.tradingeconomics.com/slovakia/personal-income-tax-rate.

United States Central Intelligence Agency. “The World Factbook.” Accessed July 30, 2015. https://www.cia.gov/library/publications/the-world-factbook/geos/lo.html.

Xinhua News Agency – CEIS. “Slovak PM to initiate referendum if Slovakia was to host NATO base.” Xinhua News Agency – CEIS. September 13, 2014. Accessed July 29, 2015. http://search.proquest.com.ezproxy.liberty.edu:2048/docview/1561970137?pq-origsite=summon&accountid=12085.