Slovakian election puts fiscal policy under the spotlight

Victory for the left-wing populist Smer party in Slovakia’s parliamentary election this weekend is likely to cause alarm that the commitment to austerity is fraying. While it is undoubtedly necessary to rein in Slovakia’s budget deficit over the medium-term, in the short-run a slight easing of fiscal policy could be a positive factor, offsetting weaker demand from the euro-zone.

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