Slovakia clearly benefits from membership in the EU
This year, we celebrate the 20th anniversary of Slovakia's accession to the European Union. It was an important impulse for the economic and social development of Slovakia. The possibility of drawing European funds is undoubtedly one of the greatest advantages of EU membership. Economists from the Slovak Academy of Sciences took a look at how we have improved financially over the past period.
"In 2004-2023, we contributed EUR 15.8 billion to the EU but spent EUR 39.7 billion, so we received 2.4 times more than we contributed. If we convert it into years, we received EUR 1.2 billion every year during this period compared to our contributions," says Tomáš Miklošovič of the Institute of Economic Research SAS.
Being part of the "European family" brings us several advantages, but on the other hand, also obligations and responsibilities towards common European goals and values. The three main sources of revenue for the EU budget are currently customs duties, contributions based on value-added tax collected by member states and direct contributions from EU countries, also known as gross national income contributions (GNI).
"EU expenditure is mainly intended for investments and social cohesion. Therefore, the EU adopts long-term spending plans for 5-7 years in the form of multi-year financial plans, also known as programming periods. In the case of Slovakia's 'non-membership', we would not have to pay direct contributions to the EU budget. On the other hand, however, we would not be able to draw European funds," adds T. Miklošovič.
EU states can be divided into two categories. If the country pays more than it receives from the common budget through European funds, we are talking about net payers. If a country receives more resources through European funds compared to direct contributions, we call it a net recipient. Since joining the EU in 2004, we have started to contribute a considerable amount to the EU budget. In the first year, it was more than EUR 300 million.
"This amount is consistently growing due to the overall increasing performance of the Slovak economy. In 2021, we contributed almost EUR 1.385 million, which was roughly 1.4% of GNI. This share was the highest during the entire period. In the following years, the contributions were slightly lower, approx. EUR 1.100 million. Our contributions to the EU budget are relatively consistent throughout the period, and it can be said that Slovakia is in the position of a net recipient for the entire period of its membership," states the SAS economist.
The economist further explains that while our contributions are consistent throughout the entire period, the rate of drawing funds in individual years differs fundamentally. This uneven drawing of funds results in the non-utilization of the potential of European funds. "We should not be indifferent to "layering" regarding European funds, because it is not only "German" money, but a significant part of this money also comes from our wallets," concludes Tomáš Miklošovič.
The European Union, which includes 27 countries, forms a strong political and economic entity that in many ways determines the direction of the world. It covers an area of more than 4 million km² and has almost 450 million inhabitants. EU accounts for almost 20% of the world's GDP and is one of the main global centres of development and research.
Edited by Monika Tináková
Photo: pixabay.com/USA-Reiseblogger