Overview

The Slovak economy experienced in 2002 its best performance since it pulled out from the financial crisis of 1998. However, soon after recovery was under way and had begun to generate jobs, macroeconomic imbalance resurfaced, while more than 18 percent of the labor force remains unemployed. Accession to the EU provides a window of opportunity to tackle those remaining challenges. This study suggests an 11-point agenda for immediate policy action and a longer-term overhaul of major spending programs in the areas of education, health and social protection. The success of this strategy is predicated on the enhancement of the country's governance framework, particularly in the areas of budgeting, decentralization and the justice system.

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