The message of the recent Central European Davos is clear: our industry needs a helping hand, otherwise we may lose it forever.
Record high inflation, an economic war with Russia, disrupted supply chains due to Covid, but also problematic decarbonization – these are all common denominators that have resulted in the closure of businesses across Central Europe.
Connection of V4 through business
Difficulties have also affected giants such as the Polish Grupa Azoty and Anwill, but the worst impacts will be felt by small and medium-sized enterprises. They are already closing down energy-intensive production facilities on a large scale, or are operating in a limited mode. Production outages are already reflected in the shortage of goods or components for industrial production.
These problems are not endemic to Slovakia, and a more detailed analysis of the problems of the industry of any V4 member provides the same unflattering picture. Therefore, the economic crisis provides an opportunity to reunite the politically divided V4 through business.
Don’t look a gift horse in the mouth.
Polish Prime Minister Mateusz Morawiecki also sensed the opportunity, and at the Economic Forum he called for a return to the V4 and reconciliation with the Hungarians. His approach may also be due to deteriorating relations with the EU, which has not yet paid Poland aid from the recovery fund, as well as continuing problems in relations with Germany.
As the saying goes, don’t look a gift horse in the mouth, and the Poles’ willingness to return to the V4 format and address common economic issues should be fully utilized. There is plenty of potential in our region, and if all four countries jointly shape their economic interests and present them together, the result could even be structural solutions in the economy.
Especially at the EU level, the V4 is able to communicate similar economic topics, which is a given given the homogeneous, energy-intensive industry in the region. The primary need should be to secure supply chains, energy security, and short-term business support.
Politics must be put aside.
The short-term horizon of the next year will be critical. If our industry survives this period, then there is a good chance that long-term solutions will be implemented. Whether in the form of diversifying energy production, or securing various parts for production.
The first opportunity to demonstrate common interest is the emergency EU energy summit, called by the Czech Republic for September 9th. The pace of growth in energy prices is also determined by the common market policy. Without fundamental market reform, there is very little chance of mitigating the consequences of the economic war with Russia.
Therefore, politics must be put aside. The situation requires a joint approach based on informed and constructive discussion, despite disagreements with Hungary and Poland. Without all relevant V4 players, it may again happen that the interests of our industry will suffer, and in this case, there is no longer any reserve to support our business.
Source: Jozef Hrabina for Webnoviny
