Structural Reforms and Economic Outlook of Slovakia
Long-term Debt Position Anchored by the Debt Brake
ARDAL
Strong commitment to keep public debt below 50% of GDP "debt brake” (well below euro area average and
Maastricht criterion)
Fiscal responsibility act (national debt brake) became stricter starting from 2018:
✓ Overall fiscal position worsened in 2020 due to outbreak of COVID-19
✓
European Commission estimates debt to GDP ratio below 60% already in 2021
✓ Government proposal of Fiscal Responsibility Act amendment to be approved in 2021
% of GDP
120
110
100
90
80
70
60
50
40
30
20
10
Public Debt to GDP Ratio
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e 2022e
Slovakia
Euro area 19 countries (from 2015)
Maastricht limit
Finland
Belgium
SK debt break 1st lower limit
H
20
Source: Eurostat, EC spring forecast 2021View entire presentation