Slovakia Iness: EU Recovery Fund high risk

The volume of the EU Recovery Fund's finances is needlessly large, with a high level of risk attached, and it invites concerns about the long-term consequences, the Economic and Social Analysis Institute (Iness) said on Thursday. Although the novel coronavirus outbreak caused a significant shock to the economy, indications of an economic slowdown were apparent as early as last year. "It's not the virus that is the cause of the EU's chronic economic problems and a slow pace of growth over the past decade; but the long-term fiscal irresponsibility of national states, lacking reforms, mainly of social systems beleaguered by demographic changes, extensive state interference in economies and the spending of precious resources on political aims," said Iness analyst Martin Vlachynsky.