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Slovakia’s Economy Might Collapse Due to Soaring Power Costs, Says PM

Eduard Heger said, "The country's economy would be killed by the rise in costs caused by Russia's invasion of Ukraine unless Brussels provided billions of euros in aid"

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Sadaf Hasan
Sadaf Hasan
Aspiring reporter covering trending topics

SLOVAKIA: The Financial Times reported on Wednesday that Slovakia’s Prime Minister, Eduard Heger, claimed that the nation’s economy was in danger of “collapsing” as a result of rising electricity costs.

According to an interview Heger gave to FT, the country’s economy would be killed by the rise in costs caused by Russia’s invasion of Ukraine unless Brussels provided billions of euros in aid.

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Heger also threatened to nationalise the nation’s electricity grid if this was not done, according to reports.

Despite being a substantial nuclear and hydroelectric energy generator, Slovakia’s largest energy supplier made the expensive choice to sell off its extra electricity to energy traders early in the year.

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Heger claimed that these traders are currently reselling the contracts to Slovakia at rates that are around five times the market rate; “Slovaks are purchasing for €500 what they sold for €100.”

Therefore, Slovakia would not benefit from the Commission’s intention to generate more than €140 billion from electricity generators in member nations. Heger asserted that if there is to be a windfall tax, it must be applied across the entire European Union.

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His remarks are the most direct yet from a European Union leader regarding the effects of the global energy crisis, as nations struggle with the fallout from Moscow’s gas squeezing that has caused prices to reach all-time highs.

He said, “We need European solutions that help all European Union Member States to tackle the energy crisis.”

Also Read: Germany Nationalises Gas Giant Uniper to Battle Energy Crisis

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