Slovak Economy on Verge of Collapse as Energy Prices Soar, Prime Minister Warns

Slovak Prime Minister Eduard Heger said on Wednesday that energy crisis and rising electricity prices could put the country's economy on the verge of collapse unless the European Union provides more financial help.

Heger said that money allocated from an EU windfall tax, which is put on "abnormally high profits" of energy companies, should be equally distributed and Slovakia should receive 1.5 billion euros ($1.5 billion).

The prime minister also hopes for additional help from Brussels that could provide Slovakia with 5 billion euros more from unused regional development funds to reduce energy bills for businesses.

"Otherwise [Slovakian businesses] will be closing and could actually collapse the whole economy," Heger was quoted by the Financial Times as saying, adding that Slovak companies providing energy supplies would have to be nationalized if Brussels did not help.

Since 2021, energy prices in EU countries have been surging as part of a global trend. After the beginning of Russia's military operation in Ukraine in February 2022 and the adoption of several packages of sanctions against Moscow by the EU, energy prices have accelerated the growth, placing energy security high both on the global and national agenda and pushing many European governments to resort to contingency measures.

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