Slovakia and the EU

 I spent most of this afternoon at the European Bank for Reconstruction and Development (EBRD), which hosted a conference on Slovakia’s accession to European Monetary Union, organised by the Slovak Embassy and International Financial Services London. As we heard from the Slovak Economy Minister, Lubomir Jahnatek, and the Governor of the National Bank of Slovakia, Ivan Sramko, Slovakia is on course to adopt the euro on 1 January next year. This is a remarkable achievement, when one thinks that this was meant to be the more disadvantaged half of the old Czechoslovakia, before the ‘Velvet Divorce’.

Moreover, Slovakia not only meets the Maastricht Criteria, which is necessary in order to enter EMU, it does so by a large margin on a number of issues, such as the inflation rate and public debt. As Manfred Schepers of the EBRD commented, Slovakia now finds itself strategically well placed to benefit from growth in the EU, the Balkans, Russia and the rest of the CIS. Interestingly, it is adopting the euro maybe as much as three years ahead of the Czech Republic. In Mr Jahnatek’s opinion, ‘now is the right time to join the euro, because Slovakia is very small, and its productivity is only 70% of the European average. Recently, the Slovak crown has been very strong, which has meant some enterprises have been operating at a loss.’ But being inside the eurozone should bring greater stability and a sharp increase in foreign trade and investment.

 

Does London Give Value for Money?

Like many people who have chosen to live in London, rather than being born here, I love this city. For the past few years, in particular, it really has been the most stimulating place on the planet to be. But I really worry that London is pricing itself out of the market. That’s certainly one reason why tens of thousands of people are moving out of London each year. And I fear the high cost of almost everything will start to turn off visitors and short-term reisdents, too, which would be a disaster in the run-up to the 2012 Olympics.

This situation really hit me when I came back last night after a month working in Brazil. My flight from Fortaleza was delayed, which meant I missed my connection in Lisbon. Always pleased to spend even a few hours in that most charming of European capitals, I nipped into the city centre. The return fare on the comfortable airport bus was 3 euros. I had a great expresso in the main square — 1 euro — and a snack lunch, with a glass of wine — under 5 euros. Now I know Portugal is cheap in comparison with many other EU member states. But London is at the opposite extreme.

From the moment someone arrives at Heathrow, they are clobbered. The Heathrow Express is probably the most expensive train ride (distance per fare) anywhere in the world. My monthly Oyster card now costs over £170 — for which I could rent a flat in Istanbul. Even modest restaurants are absurdly priced, and hotels are outrageous. Theatre seats have become prohibitive. And many small shops are being driven out of business because they cannot afford soaring rents. Not to mention the crippling cost of renting or buying residential accommodation…

So does London give value for money? I fear things have reached a stage where the answer has to be ‘no’. If it becomes a place only enjoyable for the rich, then it will surely die. So I hope all the candidates in the upcoming London Mayoral elections will bear this in mind.