Slovakia Not Alone in Growth Struggles, Says PM Fico, Warns of Gas Supply Risks

(STVR, 'Sobotne dialogy', 28 June) Slovakia is not the only country facing economic slowdown, as the entire European Union is grappling with weak growth, Prime Minister Robert Fico (Smer-SD) said on STVR's politics programme 'Sobotne dialogy' (Saturday Dialogues). Fico's remarks came in response to the Slovak Central Bank’s (NBS) downward revision of the country’s growth forecast. Fico also reiterated concerns about potential economic fallout if Russian gas supplies to the EU are fully halted. „We are an export-oriented country tied closely to the European Union. The EU is facing a major challenge in terms of economic growth. We are a small, open economy with a large share of the automotive industry. We’re still doing relatively well, as we have positive economic growth,” Fico said. The Prime Minister warned of several significant issues should the EU proceed with a full phase-out of Russian gas. The first major hurdle, he said, would be increased transit fees if gas needs to pass through multiple countries, which could drive up costs. „We will find that transit fees could be significantly higher than they are now,” he noted, adding that gas prices would likely surge immediately once the east–west flow stops. Fico also pointed to Slovakia’s lack of direct access to liquefied natural gas (LNG) terminals as a strategic vulnerability. He questioned who would bear the costs if gas prices for households were to rise. „What will happen with the lawsuit that Gazprom is certain to file against us - worth €16 to €20 billion? Who will pay for that? Until I get clear answers to these questions, I see no reason to support the 18th sanctions package,” Fico said. According to the Prime Minister, the European Commission is aware that Slovakia would be the most affected EU member state in the event of a full halt in Russian gas supplies. He described the Commission’s approach as constructive but noted that the proposed gas ban would be enacted as a legislative measure, requiring only a qualified majority vote. „In this case, Slovakia does not have a veto right, unlike with other sanctions,” Fico added. mf