INESS

Slovakia’s response to the tariff threat? The Prime Minister and the Minister of Economy have begun saying they want to redirect EU funds to help companies affected by US tariffs. We do not yet know exactly what this crisis will look like—but we already know the solution: European money. Journalists are asking us whether this is a good or a bad decision. You might be surprised, but I do not have an answer.

INESS once again organized the popular conference in cooperation with the Austrian Economics Center as part of the international conference network Free Market Road Show. On May 14, 2025 we were honoured to welcome both local and international speakers as well as almost 50 guests in the hall of the Devín Hotel in Bratislava. The topic was Targeted energy aid to households, how it should be set up and how energy poverty should be defined.

The term “wage” and its precise definition are crucial in public debates about labor markets, taxation, and social insurance. Wages also serve as a key indicator in international comparisons, guiding investors in evaluating where to locate their operations. However, confusion often arises from the distinction between gross wages and the arbitrary separation of “employee-paid” and “employer-paid” taxes and contributions.

One of the quickest and easiest ways to bring health services closer to consumers is to extend the ability to sell selected over-the-counter (OTC) medications in retail outlets while expanding the competencies of pharmacies. In terms of the openness of OTC medication sales, there are no uniform rules across Europe. About half of European countries allow OTC medicines to be sold outside pharmacies under various conditions.

The illusory truth effect is a psychological phenomenon describing the tendency to believe false information to be correct after repeated exposure. One example I can think of in Slovakia is the statement about \"cherry-picking\" in the hospital sector. Lower-tier hospitals cherry-pick the easy and profitable patients and send the rest to the larger state hospitals, which then make economic losses on them.

I often hear the phrases \'real price\' or \'justified price\', for example, in the question of ambulances or hospitals. They make my economic hair stand on end. It reminds me of how deeply embedded healthcare is in the price thinking of planned economics. Before 1989 in Slovakia, the whole economy was run on the principle of price. A manager in a company calculated the price of steel, plastic, and man-hours to produce one Škoda 120 car, for example.

The wonderful thing about economics is that it recognizes truths about the world that laypeople cannot intuitively grasp, based on simple statements about human action. Consider two concepts: opportunity costs and marginal decision-making based on marginal benefits and costs. If you really understand these two concepts, then it must seem normal to you that there is such a thing as optimal environmental pollution.

Several existing competitiveness rankings assess factors like law enforcement, infrastructure, and tax law from a business perspective. However, these often lack an accessible, practical translation of how these factors impact the daily operations of small businesses. The Bureaucracy Index was launched in 2016 by the Institute of Economic and Social Studies (INESS) to address this gap.

I recently overheard an interview in which the irrationality of Slovaks who refuse to buy more economically advantageous electric cars was criticized. Quite often, I encounter the fact that owners of electric vehicles fail to look at this problem through the eyes of the average driver. First, it is important to realize that the average Slovak drives either a second-hand car or his old car. In September alone, 5,000 individually imported cars were registered in Slovakia.

Russia\'s economic landscape is under strain. In this interview, Martin Vlachynsky, an analyst from INESS, sheds light on the complexities of Russia\'s current economic policies, their implications for businesses and ordinary citizens, and how the ongoing war continues to shape the country\'s financial reality.