a sergio, Stovak SPECTATOR coum story af Sovalda FRems in shopping car: View 9.02023 8 1056 | © KoSice’s potential to become a Central Europea hub is huge, according to new AmCham Slovaki head Putting egos and positions aside and attaching a higher purpose to all our work can help make Slovakia a bette country, says Martina Slabejova. © Jana Liptdkovs Martina Slabejovd (source: Courtesy af Arncham) Although Slovakia is falling in international rankings for innovation and competitiveness, Martina Slabejov the new executive director of AmCham in Slovakia, says the country has a lot of positives to highlight. “slovakia is a country full of talented people, so let’s not beat ourselves up so much. Let’s take a look at what good instead,” she says, adding that Slovakia, especially its eastern regions, should be more self-confident a assertive, The Slovak Spectator spoke with Slabejové about the current economic situation, the challenges that are lik emerge after September parliamentary election, and how AmCham is helping to improve the business environment in Slovakia. How do American companies operating in Slovakia view the current economic situation in the countrMacroeconomic indicators show that the situation is not very good. But the way our individual member companies see it varies, depending on their size and the sectors in which they operate. For example, in the mechanical engineering sector there’s been a drop in supply. Of course, the summer holidays have played a but in some cases demand decreased by as much as 50 percent, which is alarming. On the trans-Atlantic lev we've registered a change in regional setting within the IT sector, which is reducing its staff. This is down t excessive recruitment of new workers during the Covid-19 pandemic, the increasing use of artificial intelligence, automation and robotisation, and the economic impacts of the war in Ukraine. These factors al seem to be reshuffling the cards within the structures of this sector and in the large corporations’ thinking : strategy. This has implications for Slovakia, because when the regional structure of a corporation changes, usually also has an impact on its Slovak operation. The result is, unfortunately, a reduction in staff. Has this affected business shared service centres (BSCs) operating in Slovakia? So far, we see some volatility, however we still do have strong positions in areas of productivity, loyalty and highly skilled workforce. Slovakia has the sixth highest productivity in the European Union within the BSC sector. What are the biggest challenges American investors face in Slovakia in terms of the business environment? Weak law enforcement, and the heavy levy burden on employers - the whole levy system is too robust, bureaucratic and uneconomic given the rising cost of labour. Another issue is the unpredictable legislative environment with new laws often adopted in parliament without proper interdepartmental review or discussion with affected parties. Laws that have been adopted this way have sent budgetary expenditures ballooning, subsequently putting enormous pressure on the business sector. The Labour Code does not refle: the new needs of the digital world, being insufficiently timely and lacking flexibility. Complicated procedui for hiring foreign workers are another big challenge and red tape and complications associated with accessi EU funds also need to be addressed. Does the business environment in the west of the country differ from the east? ‘The problems entrepreneurs face in the western and eastern parts of the country are very similar: the legis burden is the same in Kodice as well in Bratislava. But there are differences at a regional level. What I woulk to see is eastern Slovakia become more self-confident and assertive, as its potential is enormous. Our project ‘Mapping the Current State of Eastern Slovakia’s Potential’ shows this clearly. What are the aims of this project? This is our flagship project in eastern Slovakia. We started in May, collecting data, and then over summer w have analysed that data with the aim of drawing up tangible proposals for the business sector, public administration and so on. Our plan is to not just end up with a presentation of collected data, but to be able produce something concrete which we can build on. Will eastern Slovakia’s potential be realised in the near future? ‘At the Valaliky industrial park near Kosice, and in PreSov, Volvo and Bosch plan to create 7,000 brand new jc within four-to-six years. This is comparable to the boost the region got when the steelworks that are today t Steel KoSice (USSK), were launched here as a greenfield investment more than 60 years ago. Kofice also has the potential to become a regional centre for not just eastern Slovakia, but neighbouring are Hungary, Poland and Ukraine. Another big opportunity for Slovakia is the post-war renewal of Ukraine, wh might open up some interesting business opportunities for eastern Slovakia. Does Slovakia have enough workers to fill all these vacancies?In eastern Slovakia there are 76,000 people, partly from the marginalised Roma community, who are jobless the moment, there are great difficulties employing them. But the government, the business sector and the region have four years to get together and get them ready to take at least some of these jobs. What about foreign workers? Slovakia already cannot manage without foreign workers, both highly and less-skilled. But the problem is t for example, workers from Balkan countries no longer consider Slovakia a top destination for work and pref western European countries instead. This is because recruiting a foreigner worker is excessively complicate and administratively difficult in Slovakia. We need to change this and motivate foreigners to come to work live here and to prepare conditions which are going to be suitable for their quality of life. Slovakia is falling in international rankings of various things, for example innovation. Is this an issue US companies in Slovakia? Yes, which is why here at AmCham we're always pleased to hear when an American company plans an R&_ centre here. For example, Solar Turbines Slovakia, which is part of the American Caterpillar Group, is. Solar Turbines Slovakia mainly focuses on providing and supporting digital solutions in the areas of software pro: development, data acquisition, machine learning, cybersecurity, user & customer experience, analytics and innovation of the entire ecosystem. Our member company, the Kempelen Institute of Intelligent Technologies (KInIT) which brings together experts in artificial intelligence and other areas of computer science, is also doing an excellent job in terms innovation. In Germany, for example, they have 149 such institutes. But why do we still talk only about Slovakia’s negatives? Our country has a lot of positives, we just need to highlight them. I continuously hear from expats that the quality of life in Bratislava is much better than, fo example, in Paris. There is a lot of greenery, when you want to cycle, you can take a flat route along the Dan but mountain bikers can head to Biely KriZ in the Small Carpathians. Bratislava has a beautiful historical ce Vienna and Budapest are close. Yes, Bratislava airport is relatively small, but just a 35-minute drive away is Vienna airport from where you can get to any corner of the world. Are US companies in Slovakia actively addressing climate change challenges? Climate change has become a huge topic for AmCham and our member companies. We have been working | the last two or three years with two groups. The first focuses on ESG (environmental, social and governance reporting, specifically on regulations and directives from the EU. Its subgroup is a construction community dealing with building legislation. In terms of individual companies, for example our banking members have launched new product lines for potential investors - green funds. They also monitor the carbon footprint of their employees. Which issues should the new government, which will be formed after the September elections, prima address? Definitely law enforcement. Parliament's procedural rules should be amended, too. One change we have proposed is that the second and third readings of draft bills should not take place on the same day. MPs shot get enough time to go through them. The state administration should be slimmed down and become more professionalised, and civil servants should undergo training in managerial skills. There are a lot of good plai addressing various aspects of life in Slovakia, but they remain only on paper - we need them to be implemer Labour legislation is another huge issue that needs to be addressed to meet some of the challenges of the 21s century and those brought by the Covid-19 pandemic. The next prime minister should tackle the education healthcare sector.Is AmCham active in any way on this? AmCham, as well as other chambers of commerce and industry in Slovakia, understand our mission as help to create a favourable, healthy and predictable business environment. Our pre-election contribution is preparing studies identifying Slovakia’s biggest problems, proposing soluti to them, and organising discussions on them. The first two were ‘Who Guards the Guardians? addressing t issue of the creation of rules in the country, and ‘No Country for the Young’, focusing on making Slovakia attractive for the younger generation. What goals did you have when you became executive director of AmCham this June? Thad an excellent starting position, as I was in contact with AmCham for many years during my time work for Microsoft and HB Reavis, and then when I worked in state administration dealing with digitisation. So, me, my job now uses all the experience and expertise I've built up so far and I continue to work with people Thave met during my career. I believe that the activities of organisations like AmCham can have a real imp on the country. One thing I would like to see in this country is greater cooperation. If we stop thinking about our egos and positions and attach a higher purpose to all our work, then we can make Slovakia a better country. You are the first woman to hold this post for more than 20 years. Is gender equality a topic you will be promoting during your time as executive director? Y’m convinced that gender equality needs to be addressed programmatically. AmCham has long been active this topic, and has organised conferences on equal pay, advancing women into managerial positions, strengthening the self-confidence of young ladies, changing established patterns, sharing positive stories a on. Within AmCham, I am also trying to support the ratio of men and women on our board. We do have lot: very capable women in leading positions. And I think each of us should start from ourselves. 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