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The Economic Benefits of Slovakia’s EU Membership - Policy Briefs

Policy Brief:

Nearly 20 years have passed since Slovakia became a member of the EU in 2004. Now is a good time to take stock of the economic benefits that Slovakia derives from being part of the EU.

The most important benefits of EU membership for Slovakia arrive from value-added of trade. Access to the EU Single Market lifts the Slovak GDP level by more than 15%. Net payments from the EU account for close to 20 EUR per person every month and another additional 40 EUR in long-term returns on investment. As a member of the EU, Slovakia is saving 11 EUR per person every month in lower interest payments on government debt.

In terms of welfare, EU membership results in additional annual income of up to 4000 EUR per capita, or 16000 EUR additional income for a family of four in 5 years’ time. This is a difference of having or not having a small-medium passenger car. Full one third of this amount of welfare is however dependent on how efficiently the available funds are allocated.

We base our findings on three of the main channels how the EU impacts the Slovak economy:

  • direct payments from the EU and their impact on growth,
  • costs of financing public debt and
  • welfare effects of international trade.

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