Slovakia country profile
Slovakia has made significant economic reforms since its separation from the Czech Republic in 1993. Reforms to the taxation, healthcare, pension, and social welfare systems helped Slovakia consolidate its budget and get on track to join the EU in 2004 after a period of relative stagnation in the early and mid 1990s and to adopt the euro in January 2009. Major privatizations are nearly complete, the banking sector is almost entirely in foreign hands, and the government has helped facilitate a foreign investment boom with business friendly policies. Slovakia's economic growth exceeded expectations in 2001-08 despite a general European slowdown. Foreign direct investment (FDI), especially in the automotive and electronic sectors, fueled much of the growth until 2008. Cheap and skilled labor, low taxes, a 19% flat tax for corporations and individuals, no dividend taxes, a relatively liberal labor code and a favorable geographical location are Slovakia's main advantages for foreign investors. The economy contracted 5% in 2009 primarily as a result of smaller inflows of FDI and reduced demand for Slovakia's exports before rebounding 4% in 2010 and 3.3% in 2011. Unemployment rose above 12% in 2010-11. The government of Prime Minister Iveta RADICOVA implemented reforms to curb corruption and improve government accountability - a major source of discontent with many Slovaks - and trimmed the budget deficit to 4.9% of GDP in 2011.
Year of EU entry: 2004
Member of Schengen area:Yes
Political system: Republic
Capital city: Bratislava
Total area: 48 845 km²
Population: 5.4 million
Currency: euro
Listen to the official EU language: Slovak
Slovakia became an independent state in January 1993 after Czechoslovakia split into its two constituent parts.
The country is in the heart of central Europe, linked to its neighbours by the River Danube. The Carpathian Mountains extend across the northern half of the country and include the High Tatras – a popular skiing destination and home to the country's highest peak – the 2 655 m Gerlachovsky. The lowlands of the Danube plain provide a fertile farming region producing wheat, barley, potatoes, sugar beet, fruit, tobacco and grapes.
The President, elected by direct popular vote for a five-year term, has limited powers. The country has a single-chamber parliament whose 150 members are elected for four-year terms.
Ethnically, the population is 86% Slovak; Hungarians are the largest minority.
Perched on many hilltops are fortifications that bear witness to Slovakia's long history of invasions. Bratislava, the coronation place for the kings of Hungary in the past, has a rich heritage of medieval and baroque architecture.
Traditional meals include potato dumplings with sheep's cheese and cabbage soup with sausages.
Among the best-known Slovaks are Štefan Banic( who invented the parachute in 1913, and Andy Warhol, the American-born pop artist, whose parents were from Slovakia.
Useful links
The Commission's Representation in Slovakia
European Parliament office in Slovakia
Slovak Government
Tourist information
