Economists Warn Slovakia's Debt Trajectory Is the Real Danger, Not Its Current Level

Slovak Prime Minister Robert Fico has defended the country's fiscal position by pointing out that Slovakia's public debt is lower than the eurozone average and lower than that of Germany and Austria. Economists, however, say this comparison is misleading and that the speed of debt growth — not its current level — is the core problem. Slovakia's debt has been rising rapidly, and the government has yet to present a credible plan to slow or reverse that trend. The country now pays approximately 2 billion euros per year in interest on its debt, a figure that is crowding out spending on public investment, education, and healthcare — areas where Slovakia already faces significant pressure. Fico leads Smer-SD, the dominant party in Slovakia's ruling coalition, which has pursued an expansionary spending approach since returning to power in 2023. Economists warn that the absence of a fiscal consolidation plan means debt-servicing costs will continue to rise, further limiting the government's ability to fund essential public services. While Slovakia's debt-to-GDP ratio remains below the eurozone average for now, the concern among analysts is that without corrective action, the country risks a rapid deterioration in its public finances.