XXX A2 Gypsies (Roma)

On another aspect of the political criteria, respect of the rights of minorities, and in particular of the Gypsies (Roma population), the Commission is attaching great importance. The Roma form an important minority in this country, with an estimated proportion of around 10 %. Most of them live in the eastern part of Slovakia, in the regions, where is the highest unemployment in Slovakia. Many Roma live in the so-called settlements. In these places living conditions for these people are very bad and are a violation to human dignity. Our government has developed good policy approaches to tackle the situation of this minority. This has been recognized by the Commission of EU several times. But there remains a gap between good policy formulation and its implementation on the ground. This is an example where the regions and their political authorities have a crucial role to play. Other candidate countries with important Roma minorities - for example Bulgaria, the Czech Republic, Hungary and Romania - face similar problems. We think, that EU has not real solution of this problem.

XXX A3 Economic criteria

We would now like to turn briefly to the economic criteria. We should also not forget that Slovakia has its own special strength and products, and that export play a vital role in the national economy. Slovakia is country with traditional building industry, with traditional machine, chemical and electrical engineering production, metallurgy. For example we were one the biggest producer of army tanks in Europe up to beginning of 90 years. In co-operation with Czech companies we have produced parts of nuclear power stations. After big decreasing of production and economy in our country at last period we wish to grow these again in EU. All that requires the existence of a functioning market economy as well as the capacity to cope with the competitive pressure and market forces within the Union. Slovakia has functioning market economy. What we mainly need is opening of EU market for products from Slovakia without limits and without any protection of national markets. But that was big problem. We hope, the market of EU will be open and free. For us too.

The structural reform programme of our government has started setting an environment to attract foreign direct investment. Tax in Slovakia is equal for all and is only 19 %, what is the lowest in EU. That altogether with company law attract foreign capital to Slovakia. The engagement of US Steel in the Slovak steel company in East Slovakia can be regarded as a positive example. Near the capital of Slovakia Bratislava there is the big auto-factory Volkswagen. About 60 km from Bratislava they have built new auto-factory PSA (Peugeot - Citroen). In the North Slovakia they have prepared place for auto-factory Hyunday. Slovakia needs to be sure that measures to support large investments in our country are fully in line with EU competition rules. There are also considerable administrative obstacles to create new small and medium enterprises in Slovakia, which play a crucial role in every country's economy.

Macroeconomic stability in Slovakia has presently been restored through measures to reduce the fiscal and external deficits. This progress will need to be consolidated by a continued prudent policy mix. That is one of the aims of EU too. The Slovak economy continued growing also in the all year 2003. According to preliminary estimates gross domestic product (GDP) grew minimally by 4.7 % in comparison with the same period a year ago. Average inflation rate will be presented 7.6 %. One of the biggest challenges in the next few years will be for Slovak companies to develop their export potential. That can be best achieved by making contacts and relationships and by using information and, we repeat, by opening the European market for us too.