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Slovak Journal of Political Sciences

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Potential Hidden Losses for Slovakia as a Member of the European Monetary Union

Jozef Stískala
  • Corresponding author
  • Metropolitan University in Prague, Prague
  • Email:
Published Online: 2014-03-11 | DOI: https://doi.org/10.2478/sjps-2013-0009


Aim of this paper is to evaluate solutions for European crisis in context of Slovak participation in rescue mechanisms. The most evident element is the European stability mechanism. There is no problem with estimation of the potential losses caused by the eurozone break-up for the Slovak Republic regarding ESM. But there are other mechanisms used mainly by the ECB as monetary instruments for stabilization of the financial markets. ECB via these instruments bears potential risk of losses regarding default of the member state(s) that could damage its balance sheet. The Protocol on the statute of the European system of central banks and ECB says that losses from the common mechanisms should be borne by eurozone member states according to their share in the ECB´s capital. It is inevitable for the Slovak Republic to realize the size of its exposure via European programmes on the peripheral economies to maintain appropriate attitude as far as the eurozone issues are concerned. The author therefore tries to reveal potential hidden losses for Slovakia as a member of the European monetary union that are not explicitly seen.


Cieľom tejto štúdie je zhodnotiť riešenia európskej krízy v kontexte účasti Slovenska na záchranných mechanizmoch. Najevidentnejšou zložkou v tejto oblasti je Európsky stabilizačný mechanizmus. Pokiaľ ide o ESM, nie je problém odhadnúť potenciálnu výšku straty pre Slovensko, pokiaľ by došlo k rozpadu eurozóny. Sú tu však ešte iné mechanizmy, ktoré sú využívané ako nástroje menovej politiky ECB na stabilizáciu finančných trhov. ECB cez tieto mechanizmy nesie riziko potenciálnych strát v prípade bankrotu členského štátu/štátov, ktorý by poškodil bilanciu ECB. Protokol o štatúte Európskeho systému centrálnych a ECB uvádza, že straty zo spoločných mechanizmov by mali niesť členské štáty úmerne k ich podielu na základnom imaní ECB. Je potrebné aby Slovensko si bolo vedomé veľkosti svojej expozície v európskych programoch realizovaných v periférnych ekonomikách, aby zastávalo správny názor pokiaľ ide o záležitosti eurozóny. Autor sa preto pokúša odhaliť potenciálne skryté straty pre Slovensko ako člena Európskej menovej únie, ktoré nie sú explicitne viditeľné.

Keywords: Eurozone; sovereign crisis; bank crisis; TARGET 2; EFSF/ESM; ELA

Kľúčové slová: Eurozóna; kríza štátov; banková kríza; TARGET 2; EFSF/ESM; ELA


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About the article

Jozef Stískala

Jozef Stískala (1990) is a graduate of the bachelor study programme of the Central European Studies of the Faculty of Public Policies of Silesian University in Opava. Currently, he is a student of the master programme of the International Relations and European Studies at Metropolitan University in Prague. His professional interests include both electoral and party systems; in the sphere of European integration, he focuses on the cooperation between the member states of the EU in justice and home affairs. As a Forex trader, he also focuses on the analysis of the European monetary union

Published Online: 2014-03-11

Published in Print: 2013-01-01

Citation Information: Slovak Journal of Political Sciences, ISSN (Online) 1335-9096 , DOI: https://doi.org/10.2478/sjps-2013-0009. Export Citation

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