icei 2014 - uniag.sk · foreword ladies and gentlemen, dear readers, it is with pleasure that i can...

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2014

International Conference on European Integration 2014

May 15 – 16, 2014Ostrava, Czech Republic

ISBN 978-80-248-3388-0

Department of EuropeanIntegration

Katedraevropskéintegrace

Proceedings of the 2nd International Conference on European Integration 2014

ICEI 2014

ICEI

201

4

VŠB -Technical University of Ostrava Faculty of Economics

Department of European Integration

VŠB - Technical University of OstravaFaculty of EconomicsDepartment of European Integration

VŠB – Technical University of Ostrava

Faculty of Economics


Proceedings of the 2nd International Conference

on European Integration 2014

May 15 - 16, 2014

Ostrava, Czech Republic

The conference is organized by:

VŠB – Technical University of Ostrava,

Faculty of Economics,


in cooperation with:

Proceedings of the 2st International Conference on European Integration 2014

Publisher: VŠB – Technical University of Ostrava

Sokolská třída 33, 701 21 Ostrava 1, Czech Republic

Editors: Iva Honová, Martin Hon, Lukáš Melecký, Michaela Staníčková

ISBN 978-80-248-3388-0

Copyright © 2014 by VŠB – Technical University of Ostrava

Copyright © 2014 by authors of the papers

Publication has been supported by the Representation of the European Commission in the Czech Republic

and the Government of the Czech Republic. Publication is not a subject of language check. Papers

are sorted by author’s names in alphabetical order. All papers passed a double-blind review process.

Programme Committee (in alphabetical order):

Dr. John Anchor

University of Huddersfield, Great Britain

Ass. Prof. Gianfranco Atzeni, PhD.

Centre for North South Economic Research, University of Sassari, Italy

prof. Ing. Peter Baláž, PhD.

Faculty of Business, University of Economics in Bratislava, Slovakia

prof. Edward Moxon-Browne,

Centre for European Studies, University of Limerick, Ireland

prof. Ing. Eva Cihelková, CSc.

Faculty of International Relations, University of Economics in Prague, Czech

Republic

prof. Dr. Ing. Dana Dluhošová

Faculty of Economics, VŠB - Technical University of Ostrava, Czech Republic

doc. Ing. Lenka Fojtíková, Ph.D.


prof. Ing. Ľudmila Lipková, CSc.

Faculty of International Relations, University of Economics in Bratislava,

Slovakia

PhDr. Lucie Loskotová

European Affairs Information Department, Government of the Czech Republic

Ing. Mgr. Jan Michal

Representation of the European Commission in the Czech Republic

Ass. Prof. James A. Nelson, PhD.

World Academy of Science, Engineering and Technology, New Mexico State

University, United States of America

Prof. Alcina Maria de Almeida Rodrigues Nunes, Ph.D.

Polytechnic Institute of Braganca, Portugal

prof. PhDr. RNDr. Stanislav Polouček, CSc.


Jan Rielaender

OECD, France

prof. Dr. Dirk Rochtus

Lessius University College Antwerp, Belgium

Martin Sikora

Moravian-Silesian Region Office, Czech Republic

prof. Ing. Karel Skokan, Ph.D.

School of Business Administration in Karvina, Silesian University in Opava,

Czech Republic

doc. Ing. Pavel Tuleja, Ph.D.

School of Business Administration in Karvina, Silesian University in Opava,

Czech Republic

prof. PhDr. František Varadzin, CSc.


Prof. dr. hab. Helena Tendera-Właszczuk

Department of European Economic Integration, Cracow University

of Economics, Poland

Conference Guarantee



Organizing Committee (in alphabetical order):

Ing. Iva Honová, Ph.D.


Ing. Lukáš Melecký


Ing. Boris Navrátil, CSc.


Ing. Michaela Staníčková


Editors: (in alphabetical order): Ing. Iva Honová, Ph.D.

Ing. Martin Hon, Ph.D.



Reviewers (in alphabetical order): Ing. Magdaléna Drastichová, Ph.D.

Ing. Kateřina Dvoroková, Ph.D.


Ing. Martin Hodula

Ing. Martin Hon, Ph.D.

Ing. Iva Honová, Ph.D.

Ing. Radomír Kaňa, Ph.D.

Ing. Eva Kovářová, Ph.D.

Ing. Aleš Melecký, Ph.D.


Ing. Bc. Monika Mynarzová, Ph.D.

Ing. Boris Navrátil, CSc.

Ing. Eva Poledníková


Ing. Pavel Šimončík

Ing. Monika Šulganová

Ing. Bohdan Vahalík

Suggested citation:

Author, A. Title of the paper. In Honová, I. et al. (ed.). Proceedings of the 2nd

International Conference on European Integration 2014. Ostrava: VŠB - Technical

University of Ostrava, 2014, pp. xxx-xxx. ISBN 978-80-248-3388-0.

http://www.ekf.vsb.cz/profily/cs/PIS030/

http://www.ekf.vsb.cz/profily/cs/NAV20/

Foreword

Ladies and gentlemen, dear readers,

it is with pleasure that I can address you on the occasion of the International

Conference on European Integration (ICEI) taking place in Ostrava and organised

in the context of this year’s 10th anniversary of the Czech Republic’s membership

in the European Union. It was very encouraging to see that this anniversary

has revived national discussion not only about the past 10 years, but also about

the scope to which extent we can draw on the potential offered by the EU membership

to the Czech Republic. At the same time, we find ourselves only a short period ahead

of the European elections which are scheduled here in the Czech Republic

for 23 and 24 May. I therefore also trust that this moment will contribute to active

participation by voters.

What the EU membership has brought to the Czech Republic? Being a Czech national,

I can say that for me personally the main benefit lies in the November 1989 dream

of „The return to Europe“ becoming a reality. This was of course meant symbolically,

as the Czech place has always been in the centre of Europe – by its geographical

position, history or culture. In this sense, accession to the EU has had in the first

place a civilizational dimension: it has reflected Czech re-attachment

to the community of values based on freedom, democracy, respect to human rights and

principles of the rule of law.

The perspectives of membership have also had an enormous motivating potential

for the whole country. Here, I would add that the same applies to the full integration

into NATO in 1999. The EU accession was not an objective in itself, but it was also

a beginning of a new journey or story, which we live to date and which has brought

both successes and partial failures. In spite of that only few doubt today that our

country, the Czech Republic, has largely benefited from the EU membership.

We are now marking 10 years in the Union. I therefore trust that the conference will

contribute to further analysis of the achievements as well as of the unused potential

EU offers. I trust it will also discuss challenges ahead of us and the future of our

Union. The dialogue on EU’S future continues and you can be part of it.

Wishing you an inspirational experience

Jan Michal

Head of the Representation of the European

Commission in the Czech Republic


7

Table of Contents

Peter Baláž ................................................................................................................... 14 Globalization of the World Economy and the Impact of China´s

Expansion on the Competitivness of EU

Ana-Maria Bercu .......................................................................................................... 26 Job Satisfaction and Organizational Commitment - Key Issues

and Facts for Romanian Organizations

Hanne-Lore Bobáková, Martina Chylková .................................................................. 36 To Some Disparities between National and Global Education

in the European Context

Oľga Bočáková, Marcel Lincényi ................................................................................. 43 Perception of Slovakia's Membership in the European Union

from the Perspective of Slovaks

Kristýna Brzáková, Jana Šimanová .............................................................................. 51 Evaluation of the Implementation of Selected Regional Operational

Programs with a Focus on Public Projects Economic Efficiency

Peter Čajka, Rastislav Kazanský .................................................................................. 59 Non Military Aspect of Population Growth as Current Demographic

Problems of the EU Countries

Šárka Čemerková, Petr Vlček, Marta Wilczková ......................................................... 70 Road Safety and Increasing of Logistics Requirements: Case Study

Oleg Deev ..................................................................................................................... 79 Banking Integration in Europe: On the Road to the Banking Union

Magdaléna Drastichová ............................................................................................... 87 Measuring Sustainable Development in the European Union Using

the Adjusted Net Saving

Klára Drličková .......................................................................................................... 102 Experience with the Application of Article 5(1) Of Brussels I Regulation

Before Czech Courts

Kateřina Dvoroková ................................................................................................... 110 Impact of Economic Crisis on the International Monetary System

Maria Fic, Daniel Fic ................................................................................................ 119 Social and Economic Effects of Special Economic Zones in Poland

Lenka Fojtíková .......................................................................................................... 127 Foreign Trade of the Czech Republic after Ten Years of Membership

in the European Union


8

Olga Francová ........................................................................................................... 138 Institutional and Economic Aspects of Deeper Integration

of the Eurozone

Karin Gajdová, Pavel Tuleja ...................................................................................... 147 Analysis of the Czech-Polish Border: Focused on the Economy

in Selected Regions

Patrizia Gazzola ......................................................................................................... 156 CSR and the European Integration Process: the Italian Case

Marcela Göttlichová, Radomila Soukalová ............................................................... 164 Ten Years of Membership in the EU - Quality of Education

and Employability of University Graduates on the Labour Market

Nicole Grmelová......................................................................................................... 173 Cooperation between Czech Courts and the Court of Justice

of the European Union Ten Years On

Olga Gubová .............................................................................................................. 182 Several Remarks on the Theory of Regionalism and Interregionalism

Jana Hakalová, Yvetta Pšenková, Miroslava Losová................................................. 192 First-time Adoption of International Financial Reporting Standards

for Business Corporations Based in EU Member State that Are Issuers

of Securities Admitted to Trading on Regulated Market

Martina Halásková, Renáta Halásková ..................................................................... 202 Role of Public Administration and Public Services in the European

Administrative Area

Ľubica Harakaľová .................................................................................................... 211 New Form of the Common Agricultural Policy of the European Union

After 2014

Tomáš Hauer .............................................................................................................. 219 Dromology and Globalization Antinomy

Katarína Havierniková ............................................................................................... 228 Convergence of the Slovak Republic Regions

Tomáš Heryán ............................................................................................................ 236 Russian Gas Policy Impacts on Selected European Countries

Martin Hodula ............................................................................................................ 244 On the Mechanics of European Banks Bailout under Banking Union

Conditions: Cost-benefit Analysis

Iva Honová, Martin Hon ............................................................................................ 253 Competitiveness Indices Methodology and Its Impact on Ranking

of Selected EU Countries


9

Michaela Horúcková, Marian Lebiedzik .................................................................... 262 Economic Development of Montenegro and Its Progress Towards EU

Membership

Jana Hvozdenská ........................................................................................................ 272 Convergence of the Bond Yields in Dependence on the EU Accession

and Financial Crisis: The Case of Visegrad Group

Simona Chuguryan,Rudolf Kucharčík ........................................................................ 280 Greenland Towards Independence and Its Eventual EU Membership

Eva Jančíková............................................................................................................. 288 SEPA – Integration in Payments - New Opportunity for Corporations

Jan Jonáš .................................................................................................................... 297 Incomplete EMU Integration as an Amplifier of Financial Crisis

Veronika Kajurová ..................................................................................................... 304 Determinants of iTraxx Europe Senior Financials Index Spreads

Radomír Kaňa, Monika Mynarzová ........................................................................... 310 European Union's Contribution to Global Security

Radka Knězáčková ..................................................................................................... 319 Analysis of Regional Differences in the Visegrad Countries and Their

Tendency to Migration

Veronika Končiková, Miroslav Hloušek ..................................................................... 327 Nature of Trade Growth Between the People’s Republic of China

and the European Union

Marcel Kordoš ............................................................................................................ 335 Role of Innovations in the EU Industrial Policy and Competitiveness

Enhancement

Eva Kovářová ............................................................................................................. 343 Globalization and Africa: How Lost and Marginal is Africa's World

Economy Region in the Period of Globalization

Monika Kozerska ........................................................................................................ 355 Development of Intermodal Transport in Poland and in Europe

Karol Krajčo .............................................................................................................. 365 Analysis of Foreign Direct Investment in the Industry of the Slovak

Republic

Michal Krajňák........................................................................................................... 372 IAS/IFRS as One of the Tools of Accounting Harmonization

in the European Union

Aleš Kresta, Marco Cassader ..................................................................................... 382 Portfolio Optimization Assuming Different EU Stock Markets


10

Joanna Krzywda, Dariusz Krzywda ........................................................................... 390 Road Toll as a Tool for Implementing Environmental Policy in Relation

to Transport in Poland

Lumír Kulhánek .......................................................................................................... 401 Debt Crisis and Convergence in the European Union

Miroslav Kuric ............................................................................................................ 410 Potential Threats to Slovak Economy Resulting from the EU Economic

Sanctions Against Russian Federation

Lenka Kyjonková ........................................................................................................ 417 Regional Disparities and Cohesion in the EU

Tereza Kyselovská ....................................................................................................... 425 Recognition and Enforcement of Judgments under the Brussels I

Regulation in the Czech Republic

Ľudmila Lipková ......................................................................................................... 433 Crisis in the Eurozone – Case of Portugal

Ingrid Majerová ......................................................................................................... 439 Export Performance and Transformational Performance as Measurable

Indicators of Macroeconomic Competitiveness Regarding Selected EU

Countries and Switzerland

Florian Margan .......................................................................................................... 448 What Is the Perspective Eurozone and Why Is Important Bank Union

Jiří Mazurek ............................................................................................................... 457 Investigation of European Union Economic Cohesion by Cluster

Analysis

Lukáš Melecký, Michaela Staníčková ......................................................................... 465 Regional Efficiency Evaluation by DEA Approach: Comparison

of Selected EU15 and EU13 Countries

Elena Mielcová ........................................................................................................... 476 Influence of Unemployment Rate on Aggregate Income Uncertainty

in Selected EU Countries

Grzegorz Michalski .................................................................................................... 484 Entrepreneurial Financial Liquidity Management Experiences

and Perspectives in EU and Outside EU: German, Austrian and French

Data Illustration

Kamila Moravčíková, Drahoslav Lančarič, Iveta Ubrežiová, Radovan Savov,

Jana Kozáková ........................................................................................................... 492 Is Human Resources Planning Influenced by Foreign Ownership?

Evidence from the Slovak Republic


11

Monika Mynarzová, Radomír Kaňa ........................................................................... 499 Theory and Practice of Industrial Policy of the EU in the Context

of Globalization Challenges

Boris Navrátil ............................................................................................................. 508 EU Governance in the Post-Crisis Period and Its Effects

Pavel Nezval ............................................................................................................... 514 Export Performance of Selected EU Countries and the Share of Trade

in Services in Their Foreign Trade

Pavlína Pawlasová, Vojtěch Spáčil, Jana Valečková................................................. 524 Image of the European Union Perceived by Generation Y

Pavlína Pawlasová, Vojtěch Spáčil, Jana Valečková................................................. 534 Perception of EU Economic Situation by Generation Y

Marie Pechrová .......................................................................................................... 545 The Impact of EU Membership on the Development of the Czech

Agriculture

Pavlína Pellešová ....................................................................................................... 553 Changes in the Structure of Employment in Various Sectors

of the Economy of the Czech Republic

Andrea Piterková, Tatiana Bányiová, Tatiana Bieliková ........................................... 564 How the Prediction of Financial Distress Changed Based

on Development of Agriculture in Slovakia?

Eva Poledníková ......................................................................................................... 572 Evaluation of Czech Regional Development in the Context of the EU

Cohesion

Dirk Rochtus ............................................................................................................... 581 Is Germany Dominating Europe? The Role of the Nation State

in the Euro Crisis

Małgorzata Rutkowska-Podołowska, Nina Szczygieł ................................................. 588 Ecological Insurance in Light of Environmental Investments: Polish

Insight

Pavel Salamon ............................................................................................................ 596 Business Cycles Alignment of Selected CEECc and the Euro Area

Jan Sedláček ............................................................................................................... 603 Higher Education Governance in the EU – Side Effects of Using

Measurable Performance Indicators

Peter Serenčéš, Adriana Rašovská, Zuzana Čierna, Tomáš Rábek, Marián Tóth ..... 610 Impact of European Integration on Agriculture in Slovakia


12

Karel Skokan, Lucie Zotyková .................................................................................... 618 European Competitiveness and Industry Cluster Based Policies: Case

of Czechia

Veronika Soósová ....................................................................................................... 626 Analysis of the Region´s Environment for the Formation of Clusters

Possibilities

Michaela Staníčková .................................................................................................. 634 Competitiveness Factors in Regional Growth: the Case of Central

and Eastern European Countries

Jan Sucháček .............................................................................................................. 644 European themes within national TV news reporting in the Czech

Republic

Jarmila Šebestová, Pavel Adámek, Thomas M. Cooney............................................. 651 Entrepreneurial Activity as a Driver of Economic Sustainability

in the Czech Republic: Lessons from Ireland

Alice Šedivá Neckářová .............................................................................................. 660 Absorption Capacity of the Czech Republic to the European Union

Funds

Milan Šimek, Lenka Janíčková ................................................................................... 667 Is Active Labour Market Policy Useful? The Case of the Chosen

Countries

Ondřej Šimpach, Jitka Langhamrová ......................................................................... 675 Development of Socio-Economic Indicators and Mortality Rates During

Ten Years of the CR Membership in the EU

Jan Široký, Kateřina Maková ..................................................................................... 684 Economic Crisis and the Movement of the Value Added Tax Rates

in the European Union Member States

Václav Šmejkal, Stanislav Šaroch .............................................................................. 693 EU as Highly Competitive Social Market Economy – Goal, Options,

and Reality

Ivan Šotkovský ............................................................................................................ 705 Regional Disparities of the Ageing Process in the European Union

Filip Tošenovský ......................................................................................................... 715 Distance-Based Optimization Approach to Building Competitiveness

Kamila Turečková ...................................................................................................... 723 Quaternary Sector as a Source of Growth and Competitiveness

in the EU

Bohdan Vahalík .......................................................................................................... 731 Export Diversification of the European Union and BRICS Countries


610

Impact of European Integration on Agriculture in Slovakia

Peter Serenčéš1, Adriana Rašovská2, Zuzana Čierna3, Tomáš Rábek4,

Marián Tóth5 Slovak university of agriculture in Nitra

Department of Finance

Tr. A. Hlinku 2, 949 76 Nitra, Slovak Republic

Nitra, Slovak Republic

[email protected], [email protected], [email protected],

[email protected], [email protected]

Abstract Slovakia is perceived as a leader among the European countries due to its size of farms.

Despite of a high concentration of farms - up to 95.1% of the utilized agricultural land

is farmed by large farms - the Slovak agriculture is considerably less productive.

The Common Agricultural Policy (CAP) develops not only the traditional role of agriculture,

a food production, but shapes the face of country, affects the quality of environment and also

helps to increase the potential of tourism development through the cooperation of direct

payments system, capping and greening. CAP greatly affects the agriculture in the EU mainly

through the subsidies as they are an indispensable source of funding of agricultural firms.

The aim of this paper is to analyze the impact of CAP on the economy of farms based

on an analysis of a unique set of agricultural entities operating in Slovak Republic

Keywords: Agriculture, Common Agricultural Policy, Development, Influence, Subsidies

JEL Classification: M40, M69, Q29, Q49

1. Introduction

Slovakia's accession to the European Union had an impact on the entire economy,

especially on agriculture, representing the integration basis in Europe.

The independent Slovak agricultural policy was abolished after entering the EU and it

was needed to adopt the unified agricultural policy, which represents a set of

economic, institutional, legislative, and policy instruments to ensure a homogenous

market.

Profitability in the Slovak agriculture after 2004 period is deep below the average EU-

27 countries, as well as the support to agriculture calculated in Euros per hectare of

agricultural land. Slovakia is at low level with the amount of total agricultural output

per hectare of agricultural land. Not only it lags behind the average EU-27 (against

which it achieves only half of the value), but also keeps behind the Czech Republic,

Hungary and Poland, i.e. states which Slovakia joined the EU with.

The number of farms in the EU-27 gradually decreased and their average acreage

increased. A similar trend was also in Slovakia. Cooperatives and capital companies

dominated in the Slovak agriculture. They cultivate 90% of agricultural land, while

in the EU-15 is dominated by individuals (family farms).


611

By Slovakia's accession to the EU, the soil has become an essential means

for obtaining government funds from the Common Agricultural Policy. In Slovakia,

there is still a substantial portion of agricultural land farmed by farms with large

acreage farmed land.

The analysis of the group of agricultural farms (Szabo, 2006), operating in the best

climate and agricultural conditions, showed the great differentiation in performance

and utilization of factors of production, especially amplifying factors. In 2003 almost

the half of the farms was in loss, and many are threatened to destruction after entry to

European Union. Agrarian sector needed new strategic solution as modernization of

production capacities, conformity of production structure and demands, integration to

multinational production sale verticals, development of ecological production and

alternative activities.

The adoption of the CAP had a positive impact on the growth of the off-market and

total income but at the same time, its production efficiency decreased and the

production structure has changed. Less efficient sectors of the crop and livestock

production declined. Regarding the aspect of financing of the agricultural sector, the

European resources, mainly the direct payments, were determined. The total subsidies

into agriculture increased in comparison with the pre-accession period. The volume of

direct payments including the complementary national direct payments reached the

maximum level in 2007, 2008 and 2009. (Chrastinova, Burianova, 2012)

When analysing the impact of risk of agricultural farms on their profitability, studies

show that the lower level of risk, the lower level of profitability of farms may occur

(Piterková et al. 2013). The effort of farms is to increase the efficiency of business,

which is inextricably connected with achieving the lowest possible cost per unit of

output. The low costs represent an important competitive advantage for a farm.

(Váryová et al.2012) As confirmed by the results of research in quality management

by authors Savov et al. (2013) the Malcolm Baldrige National Quality Award criteria

significantly contribute to improve the productivity and efficiency of all business

processes.

The behaviour of agricultural farms in agriculture is significantly influenced by the

current support scheme and the level of support within the EU CAP but also by market

conditions. The impacts of the particular scenarios on the changes of production

indicate that Slovak agriculture will approach just slowly the 2008 production level.

This will be decisively influenced by the price development. Despite of this, it is

evident that the most favourable result can be achieved under the Flat Rate Scenario

while the absolute abolition of direct payments (Liberal Scenario) will bring very

unfavourable economic consequences with impacts on agricultural production in

Slovakia. (Božik, 2011)

In connection with the proposed reform of the current Common Agricultural Policy

for period 2014-2020, the direct support should be split more equally between the

Member States, namely by reducing the link to historical data and by taking into

account the overall context of the EU budget. All Member States with direct subsidies

below 90% of the EU average should reduce the difference between their current level

and this level by one third. This convergence should finance proportionally all

http://is.uniag.sk/lide/clovek.pl?id=35862


612

Member States with direct payments above the EU average. The discussion about the

future multiannual financial framework for the period commencing in 2021, should be

focused on the objectives of complete convergence through the equal distribution of

subsidies across the EU.

2. Data and Methodology

Our analysis was based on the database of Ministry of Agriculture and Rural

development for agricultural farms over the period 2000-2012. The database contained

individual data including balance sheets and income statements for each farm. For our

analysis, data were selected according to the farm legal form to subset of the

agricultural production cooperatives and the subset of the capital companies - Joint

Stock Company (JSC) and Limited Liability Companies (Ltd.). These are the two

main legal forms in Slovak agriculture with respect to the utilised agricultural area

(UAA). In 2012 cooperatives cultivated 37.87% of UAA and companies 42.40% of

UAA. To measure the effects of Common Agricultural Policy (CAP) we divided the

observed period into three parts:

1. Period before CAP implementation – years 2000-2003 in our analysis

2. Period of CAP1999-2006 implementation – years 2004-2006 in our analysis

3. Period of CAP2007-2013 implementation – years 2006-2012 in our analysis

Table 1 shows the number of cooperatives and companies included in the database.

Table 1: Number of Agricultural Cooperatives and Companies in the Analysis

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Cooperatives 714 665 640 616 573 572 560 539 525 540 506 518 523

Companies 486 558 594 718 709 832 799 820 725 839 793 876 951

TOTAL 1200 1223 1234 1334 1282 1404 1359 1359 1250 1379 1299 1394 1474

Source: Database of Ministry of agriculture and rural development, author’s calculations

The farm structure in Slovak agriculture is similar to the situation in Czech Republic.

Unlike in old EU Member states the majority of UAA is cultivated by large farms with

more than 1000 hectares per farm. The legal form and the double entry accounting

enable analyze the balance sheet structure (see table 2). Agricultural farms in 2012

compared to year 2000 had more assets per hectare (+ 917.20 €). This shows the

increasing asset intensity in agriculture.


613

Table 2: Balance Sheet Structure of Agricultural Farms (in €/ha)

2000 2002 2004 2006 2008 2010 2012

Total assets 1440.4 1556.4 1673.1 1790.9 2203.8 2272.6 2357.6

Fixed assets 916.1 973.2 978.5 1056.0 1291.2 1392.4 1424.8

Current assets 509.2 565.5 677.4 719.1 900.0 868.3 918.5

Accruals 15.1 17.7 17.2 15.8 12.6 11.9 14.3

Total Equity and

Liabilities 1440.4 1556.4 1673.1 1790.9 2203.8 2272.6 2357.6

Equity 909.4 937.3 985.4 1003.9 1144.1 1089.4 1109.7

Liabilities 495.2 540.0 616.0 674.1 923.3 976.6 1055.6

Accruals 35.8 79.1 71.8 113.0 136.3 206.5 192.3


When comparing legal forms the increase in assets in cooperatives was from 1563.60

€/ha in year 2000 to 2047.30 €/ha in 2012 (+31%). Higher increase in assets was in

case of companies. The value of assets per hectare increased sharply from 1205.40

€/ha in 2000 to 2654.20 €/ha in 2012 (+120%). On the Equity and Liability side of the

Balance sheet the ratio between equity and liabilities is changing in favour of

liabilities. Generally agricultural Cooperatives have higher proportion of equity

compared to agricultural Companies.

To analyze the impact of European integration on agriculture we focused on 4 ratios:

1. Subsidies per hectare

2. Profit per hectare

3. Profit without subsidies per hectare

4. Subsidies to Sales ratio

To describe the development of presented ratios in the whole dataset we used

descriptive statistics median, upper quartile and lower quartile. The data were

visualised by box and whisker plots and the significance of differences was measured

by ANOVA, T-test and Tukey Post Hoc test. Results are in the table 3.

Table 3: Significance of Differences in Ratios

Profit/

ha

Subsidies/

ha

Profit

without

Subsidies/

ha

Subsidies/

Sales

difference between period 1 and 2 Yes Yes Yes Yes

difference between period 1 and 3 No Yes Yes Yes

difference between period 2 and 3 Yes Yes Yes Yes

difference in legal forms Yes Yes Yes Yes

Source: author’s calculations


614

3. Results and Discussion

Agriculture in all European countries is supported by public funds in form of

subsidies. The total amount of subsidies received by agricultural farms in Slovakia

increased after 2004 after CAP introduction in 2004 (table 4, increase in median).

The increase in subsidies was followed also by higher profit per hectare in first years

of CAP introduction (table 4, median of profit/ha in years 2004-2008).

Table 4: Subsidies and Profit per hectare in Slovak Agriculture in 2000-2012

(€/ha)

Subsidies/ha Profit/ha

lower

quartile median

upper

quartile

lower

quartile median

upper

quartile

2000 107.51 138.38 168.67 -54.22 0.61 14.69

2001 77.03 114.17 146.02 -7.69 7.64 35.62

2002 66.39 106.09 136.53 -4.46 7.25 29.80

2003 76.03 107.53 135.67 -93.12 0.37 14.44

2004 148.84 166.00 195.39 3.51 22.43 69.51

2005 144.48 166.46 208.54 0.21 11.73 49.86

2006 157.86 194.91 259.47 2.04 16.23 52.55

2007 169.88 223.08 286.37 5.74 28.22 89.27

2008 188.05 247.42 317.96 0.40 16.67 67.42

2009 195.00 264.50 349.75 -147.09 0.85 23.26

2010 197.49 262.70 335.71 -46.22 7.02 49.21

2011 186.65 245.05 305.24 -2.25 19.81 93.16

2012 189.02 239.56 297.40 -30.58 11.38 69.38


The profitability in agriculture depends on weather and climate conditions and during

the observed period 3 years were extremely negative. Adverse weather conditions in

2000, 2003 and 2009 resulted in very low profitability in the majority of agricultural

farms (table 4, profit/ha in 2000, 2003, 2009, lover and upper quartile, median).

Higher subsidies per hectare were not fully transformed into higher profit per hectare

(table 4, higher increase in median subsidies/ha compared to increase in median

profit/ha).

Increase in subsidies per hectare was confirmed also by comparing the 3 time periods

and legal forms (figure 1). Agricultural cooperatives and companies received in first

period (2000-2003) less on subsidies than after the integration into EU in 2004. In the

second period (2004-2006) the subsidies in new member state were much lower

compared to old member states and the situation improved in the third period (2007-

2012). The majority of subsidies were linked to Single Area Payment Scheme (SAPS).

It allows a single annual payment to be made to farmers on the basis of the area of the

farm. Also there are significant differences between the legal forms measured by ratio

subsidies per hectare. The situation is the same in case of profit per hectare.


615

Figure 1: Subsidies and Profit per hectare in the Legal Forms (€/ha)


In each period companies generated higher profit per hectare compared to

cooperatives. Main reason is the history of agriculture in Slovakia before 1989.

Companies in Slovak agriculture are generally new entities driven by the profit

maximization in the market economy. Majority of the cooperatives existed also before

1989 and the higher numbers of owners increase the moral hazard and agency cost

which results in lower profitability.

In the next section we focused on the profitability of farms without the impact of

subsidies and the ratio between Subsidies and Sales (table 5). Subsidies represent

stable income without risk for each farm.

Table 5: Profit without Subsidies per hectare (€/ha) and Subsidies to Sales in

Slovak Agriculture in 2000-2012

(Profit without Subsidies)/ha Subsidies/Sales

lower

quartile median

upper

quartile

lower

quartile median

upper

quartile

2000 -200.38 -153.95 -115.45 0.17 0.31 0.61

2001 -149.93 -108.34 -57.65 0.09 0.21 0.45

2002 -145.70 -99.74 -49.91 0.07 0.17 0.39

2003 -207.95 -132.13 -82.22 0.08 0.19 0.43

2004 -182.28 -138.91 -87.37 0.15 0.29 0.59

2005 -234.90 -166.85 -113.50 0.15 0.30 0.70

2006 -268.32 -187.86 -132.50 0.17 0.34 0.78

2007 -281.66 -191.47 -114.05 0.18 0.32 0.74

2008 -327.47 -236.11 -144.74 0.19 0.35 0.83

2009 -437.82 -324.28 -206.88 0.27 0.48 1.05

2010 -376.51 -272.71 -173.77 0.23 0.43 1.04

2011 -319.58 -216.72 -112.83 0.17 0.33 0.80

2012 -335.33 -230.74 -127.32 0.17 0.30 0.68



616

Therefore the majority of farms in Slovak agriculture relay on subsidies and are less

motivated to produce agricultural production for the market. This fact can be observed

by both indicators in table 5. Farms generate loss from the market production and the

loss is increasing in years after CAP implementation (table 5, profit without subsidies

in 2004-2009). During the same period the proportion of subsidies on agricultural

production in form of sales increases (table 5, subsidies/sales in 2004-2009). An

opposite trend can be observed in 2010-2012.

The ability to generate profit without subsidies is different in the legal forms (figure

2). Both legal forms generate loss without subsidies. Loss without subsidies in case of

companies is lower than the loss without subsidies in case of cooperatives. Parallel

companies generate higher sales (figure 2, subsidies to sales by legal form).

Figure 2: Profit without Subsidies per hectare (€/ha) and Subsidies to Sales

Ratio in the Legal Forms


4. Conclusion

The process of integration into EU brought changes to Slovak agriculture. It was

followed by increase of public funds in form of CAP subsidies. Their main aim is to

support farm income as well as rural development. The Slovak agricultural farms in

our sample displayed low profitability measured by profit per hectare. On the other

hand after integration into EU in 2004 the majority of farms generate profit.

Significant differences in profit per hectare were observed between agricultural

cooperatives and companies, the prevailing legal forms in the Slovak agriculture.

Companies are more profitable compared to cooperatives.

Increase in subsidies was followed by lower ability to generate profit without

subsidies. Agriculture in Slovak Republic is not able to cover cost by revenues without

public support. This applies to both legal forms. Companies are more successful as the

loss generated without subsidies is lower. Better performance of companies is the

result of more factors. We only measured the difference in generated sales which are

in favour of companies.

There are several limitations of the study approach, e.g. reliability of the financial

statements used for tax purposes. Farms as any other entity are motivated to decrease

the profit because of tax optimisation. But the number of farms included in our

analysis should minimize this limitation.


617

Acknowledgements

This paper was created within the project VEGA „Transmission mechanism of CAP

instruments and their impact on the financial situation of farms“. Project registration

number 1/0796/14 and within the project VEGA “The Common agricultural policy

2014-2020 and its impact on the financial situation of agricultural enterprises

in the Slovak republic”. Project registration number is 1/0912/14.

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771

Authors Index

A

Pavel Adámek, 651

B

Peter Baláž, 3, 14 Tatiana Bányiová, 564 Ana-Maria Bercu, 26 Tatiana Bieliková, 564 Stanislav Bílek, 740 Hanne-Lore Bobáková, 36 Oľga Bočáková, 43 Kristýna Brzáková, 51

C

Marco Cassader, 382 Simona Chuguryan, 280 Martina Chylková, 36 Thomas M. Cooney, 651 Peter Čajka, 59 Šárka Čemerková, 70, 754 Zuzana Čierna, 610

D

Oleg Deev, 79 Magdaléna Drastichová, 5, 87 Klára Drličková, 102 Kateřina Dvoroková, 5, 110

F

Daniel Fic, 119 Maria Fic, 119 Lenka Fojtíková, 3, 4, 5, 127 Olga Francová, 138

G

Karin Gajdová, 147 Patrizia Gazzola, 156 Marcela Göttlichová, 164 Nicole Grmelová, 173 Olga Gubová, 182

H

Jana Hakalová, 192 Martina Halásková, 202 Renáta Halásková, 202 Ľubica Harakaľová, 211 Tomáš Hauer, 219 Katarína Havierniková, 228 Tomáš Heryán, 236 Miroslav Hloušek, 327 Martin Hodula, 5, 244 Martin Hon, 2, 4, 5, 253, 774 Iva Honová, 2, 4, 5, 253, 774 Michaela Horúcková, 262 Jana Hvozdenská, 272

J

Eva Jančíková, 288 Jan Jonáš, 297 Lenka Janíčková, 667

K

Veronika Kajurová, 304 Radomír Kaňa, 5, 310, 499 Rastislav Kazanský, 59 Radka Knězáčková, 319 Veronika Končiková, 327 Marcel Kordoš, 335 Eva Kovářová, 5, 343 Jana Kozáková, 492 Monika Kozerska, 355 Karol Krajčo, 365 Michal Krajňák, 372 Aleš Kresta, 382 Dariusz Krzywda, 390 Joanna Krzywda, 390 Rudolf Kucharčík, 280 Lumír Kulhánek, 401 Miroslav Kuric, 410 Lenka Kyjonková, 417 Tereza Kyselovská, 425

L

Drahoslav Lančarič, 492 Jitka Langhamrová, 675


772

Marian Lebiedzik, 262 Veronika Linhartová, 763 Ľudmila Lipková, 3, 433 Marcel Lincényi, 43 Miroslava Losová, 192

M

Ingrid Majerová, 439 Kateřina Maková, 684 Florian Margan, 448 Jiří Mazurek, 457 Lukáš Melecký, 2, 4, 5, 465, 774 Grzegorz Michalski, 484 Elena Mielcová, 476 Kamila Moravčíková, 492 Monika Mynarzová, 5, 310, 499

N

Boris Navrátil, 4, 5, 508 Pavel Nezval, 514

P

Pavlína Pawlasová, 524, 534 Marie Pechrová, 545 Pavlína Pellešová, 553 Andrea Piterková, 564 Eva Poledníková, 5, 572 Yvetta Pšenková, 192

R

Tomáš Rábek, 610 Adriana Rašovská, 610 Dirk Rochtus, 3, 581 Małgorzata Rutkowska-Podołowska, 588

S

Pavel Salamon, 596 Radovan Savov, 492 Jan Sedláček, 603 Peter Serenčéš, 610 Karel Skokan, 4, 618 Veronika Soósová, 626 Radomila Soukalová, 164

Vojtěch Spáčil, 524, 534 Michaela Staníčková, 2, 4, 5, 465, 634, 774 Jan Sucháček, 644 Nina Szczygieł, 588 Stanislav Šaroch, 693 Jarmila Šebestová, 651 Alice Šedivá Neckářová, 660 Jana Šimanová, 51 Milan Šimek, 667 Ondřej Šimpach, 675 Jan Široký, 684 Václav Šmejkal, 693 Ivan Šotkovský, 705

T

Filip Tošenovský, 715 Marián Tóth, 610 Pavel Tuleja, 4, 147 Kamila Turečková, 723

U

Iveta Ubrežiová, 492

V

Bohdan Vahalík, 5, 731 Jana Valečková, 524, 534 Radka Vaníčková, 740 František Varadzin, 4, 746 Petr Vlček, 70, 754 Jolana Volejníková, 763

W

Marta Wilczková, 70, 754

Z

Robert Zeman, 740 Lucie Zotyková, 618

Authors Collective of Authors

Editors Iva Honová, Martin Hon, Lukáš Melecký, Michaela

Staníčková

Department Department of European Integration (120)

Title Proceedings of the 2nd International Conference

on European Integration 2014

Place, Year, Edition Ostrava, 2014, 1st edition

Number of pages 772

Publisher VŠB – Technical University of Ostrava, Czech

Republic

Press A.D.M. reprografické studio Ostrava

Number of copies 130

ISBN 978-80-248-3388-0

Inte

rnat

iona

l Con

fere

nce

on E

urop

ean

Inte

grat

ion

2014


May 15 – 16, 2014Ostrava, Czech Republic

ISBN 978-80-248-3388-0

Department of EuropeanIntegration

Katedraevropskéintegrace

Proceedings of the 2nd International Conference on European Integration 2014

ICEI 2014

ICEI

201

4VŠB -Technical University of Ostrava

Faculty of Economics Department of European Integration

VŠB - Technical University of OstravaFaculty of EconomicsDepartment of European Integration

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