Search
Search Results
-
The importance of chickpea (Cicer arietinum L.) and its cultivation in Hungary: A review
71-75Views:136Climate change today is no longer a question for the future. Climate change impacts not only human populations but also plant species, which are increasingly exposed to its negative effects. The increasing number of days of drought, the lack of precipitation and its unfavorable distribution are observed each year, which require adaptation. Chickpea (Cicer arietinum L.) is a drought-tolerant species characterized by deep root system that enables it to withstand prolonged periods without precipitation. Additionally, it is a thermophilic crop and tolerates moderate increases in average temperature." There is no great tradition of its cultivation and use in Hungary, but it has been cultivated by the Iregszemcse Research Institute since the 1970s. In addition to the positive aspects of its cultivation, it also has good nutritional values, outperforming in some parameters the beans (Phaseolus vulgaris L.) and peas (Pisum sativum L.) what are popular in Hungary. Its high protein and crude fibre content allows it to be used not only for human consumption but also for animal feed. The aim of this review is to describe the importance of chickpea and to identify the advantages and disadvantages of its cultivation.
-
Harnessing diversity in durum wheat (Triticum turgidum L.) to enhance climate resilience and micronutrient concentration through genetic and agronomic biofortification
9-20Views:445Huge consumption of wheat-driven food products with low bioavailability and small concentrations of zinc is responsible for zinc-induced malnutrition and associated health complications. The contemporary durum wheat varieties have inherently tiny zinc concentrations in developing grain, which cannot meet the daily human zinc demand. Despite the fact that over two billion people are suffering from iron and zinc-induced malnutrition, various intervention measures have been deployed to reverse the effect of zinc-induced malnutrition on humans. There are evidences that agronomic and genetic biofortification approaches can increase grain yield and nutritional quality (i.e. zinc, iron, protein, and vitamins) of durum wheat to a greater extent. However, there is a lack of direct empirical evidence for which the influence of both biofortification approaches on improving human health. Application of micronutrient-containing fertilizers either in the soil or foliarly is effective in combination with NPK, organic fertilizers coupled with efficient durum wheat varieties, emphasizing the need for integrated soil fertility management (ISFM). Although genetic biofortification is a cost-effective and sustainable approach, agronomic biofortification provides an immediate and effective route to enhancing micronutrient concentrations in durum wheat grain. The application of zinc-containing fertilizers is more effective under drought conditions than in normal growing situations. Hence, this article provides a key information for agronomists and breeders about the potential of biofortification interventions to improve durum wheat yield and enrich the grain qualitative traits to ensure food and nutritional security of the ever-increasing world population.
-
The effect of different compost rates on the yield of ryegrass (Lolium perenne L.)
95-98Views:267Protection of natural resources and sustainable natural resources management are essential for the long-term survival of humanity. This makes necessary nowadays the development of environmentally conscious living and spread of that in the future. The amount of organic waste materials, produced during human activities, could be decreased by composting instead of dispose them in landfills. Applying appropriate treatment technology and additives, the compost could be used as fertilizer for horticultural crops and it could increase the easily available nutrient content of soils. Compost utilization prevents nutrient deficiencies and by using the optimal rate, we could reach significant yield increases.
-
The role of green manure crops in Hungarian plant production
49-53Views:491According to the data of KSH (Hungarian Central Statistical Office), the sowing area of cereals in the crop year 2016 was over 2.56 million ha, on which winter wheat and maize were produced in a rate of around 50–50%. Regarding these data it is obvious that the domestic cropping structure has been simplified and become unilateral. This unfavourable crop rotation system causes several problems. The number of Hungarian livestock decreased in the past decades. The amount of manure was 24 million tons in 1960, but only hardly 4.5 million tons of organic manure was applied in 2016. Therefore, the importance of other possibilities, alternatives for organic matter recovery have become enhanced. This is especially important from the aspect of sustainable plant production. The fact that the European Union has introduced new directives for subsidiaries in 2015 has to be noted as well.
The objective of the set experiment is to find new technological solutions that are suitable for the execution of sustainable plant production by inadequate crop rotation, organic substance recovery conditions or under more unfavourable climatic conditions.
-
Soil biological challenges in our age
193-196Views:258The paper deals with the soil biological research and its contribution to the changed cropping strategy and to the sustainable and environmentally friendly farming and management. The paper emphasizes the importance of biodiversity, as one of the most important ecological functions of soil. The organisms, populations and communities living in the soil play a key importance in the preservation of soil fertility. The most important research areas are presented dealing with in the last decades the national researchers and the challenges we face regarding the current soil biological problems. We have to prepare to examine the soil biological effectiveness of the more widely spread bio-preparations, bacterium preparations, and bioregulators. The prerequisites are the versatile knowledge of the biological state of soils and monitoring examination of the different effects soils had (including the mentioned preparations).
-
Efficiency of Fertilization in Sustainable Wheat Production
59-64Views:314In sustainable (wheat) production plant nutrition supply and fertilization play decisive roles among the agrotechnical elements, because of their direct and indirect effects on other agronomical factors.
In long-term experiments, we studied the roles of agroecological, genetic-biological and agrotechnical factors in the nutrient supply, fertilization and its efficiency in wheat production under continental climatic conditions (eastern part of Hungary, Trans-Tisza) on chernozem soil. Our results have proved that there are different (positive and negative) interactions among ecological, biological, and agrotechnical elements of wheat production. These interaction effects could modify the nutrient demand, fertilizer (mainly nitrogen) response of wheat varieties and efficiency of fertilization in wheat production.
The optimum N-doses (+PK) of wheat varieties varied from 60 kg ha-1 (+PK) to 120 kg ha-1 (+PK) depending on cropyears, agrotechnical elements and genotypes. The winter wheat varieties could be classified into 4 groups according to their fertilizer demand, natural and fertilizer utilization, fertilizer response and yield capacity.
Appropriate fertilization (mainly N) of wheat could affect both the quantity and quality of the yield. By using optimum N (+PK) fertilizer doses, we could manifest genetically- coded baking quality traits of winter wheat varieties and reduce quality fluctuation caused by ecological and other management factors. The efficiency of fertilization on different baking quality parameters (wet-gluten, valorigraph index etc) were variety specific (the changes depended on genotypes).
Our long-term experiments proved that appropriate fertilization provides optimum yield, good yield stability and excellent yield quality in sustainable wheat production. We could this get better agronomic and economic fertilization efficiency with less harmful environmental effects. -
On the connection between spatial development and sustainable landscape in the Northern Great Plain region
145-148Views:147This paper tries to find connection between sustainable landscape and spatial development policy of the Northern Great Plain region on the basis of specific examples explained in scientific literature. Searching for the common roots of spatial development and sustainability the paper explains two interpretations of sustainability from the view point of landscape, than the most significant element of current landscape change – the polarization of landscapes – will be introduced. This trend in landscape change basically determines the direction of spatial development. This paper analyses the Northern Great Plain region from two different approaches. In the first grouping the region is exposed from the view point of spatial development. In the second partitioning the area is divided into subject matters based on the principles of sustainability and polarization of landscape. This research – analyzing development plans and strategies – considers the current situation within the subject matters.
-
Status and Prospects of Integrated Pest Management in Apple Production in Hungary
307-316Views:178Farming methods supporting the ecological function of agriculture will play an even more dominant role in the near future than they do now, as much in Hungary as in the rest of the EU.
Several farming techniques supporting sustainable development have already evolved, and in this essay, I deal with integrated production i.e. integrated fruit production in Hungary and its perspectives. I analyze both European and Hungarian regulations on integrated production and their development.
It is obvious that in the orchards of Europe, integrated production is gaining ground. We can expect the increased spread of this western trend to Hungary, too, because one of the conditions for remaining on the market will be a product from integrated production. However, we cannot expect any rapid increase in the future. In my opinion, there are three ways to propagate integrated production:
− changes in the approach of farmers;
− vocational training of farmers because of the greater „knowledge-demand”; improving the consultant network;
− strict monitoring of the production process. -
Mitigation and adaptation measures in the hungarian rural development programme
245-250Views:175In the Hungarian Rural Development Programme (RDP) climate change adaptation is addressed through the measures in Axis 1, 2, 3 and 4. Under Axis 1 farmers can receive support for farm modernisation that will help them adapt to climate change. The processing industry will also be able to use the available resources for capital expenditure on buildings and new equipment. Axis 2 and especially the soil and water package within the agrienvironmental
measure aim to support production methods, which protect soil quality and will help adaptation to climate change. Measures of Axis 3, such as basic services for the economy and rural population, village renewal and development will provide local communities the opportunity to identify actions that can be undertaken to deal with the effects of climate change. On the other hand, the extension of forest resources contributes to climate change mitigation and enhances carbon sequestration. New methods have been elaborated to the sustainable regional water management, irrigation, water regulation, defence against internal water, and soil protection established. Water management contributes to the balance of water quantity on one side, but also to mitigating the climate change on the other. -
Investigation of the production parameters, nutrient and mineral composition of mealworm (Tenebrio molitor) larvae grown on different substrates
129-133Views:459During the rearing of mealworm (Tenebrio molitor) larvae, the optimisation of the growing substrate has a particular importance. The application of the appropriate substrate is a fundamental pillar for intensive and safe production. The requirements for substrate include the lack of toxins, high nutrient and micro-macro element content. The aim of this study was the evaluation of the effects of different substrates on the production parameters, nutrient and mineral composition of the mealworm larvae. The experiment lasted through 14 days. 5 treatments were set up at, where the variable was the substrate. The test system consisted of 25 units (5 treatments and 5 replicates). 10 mealworm larvae per unit, (total of 250 larvae) were used at the beginning of the experiment. Regarding the substrates, our study included sweet potato (SP), may turnip tuber (MT) and may turnip leaf (ML). In addition to the plant by-products, wheat flour (WF) and wheat semolina (WS) were used as control substrates. Trace element uptake and production parameters of the larvae were determined at the end of the experiment. Regarding the production parameters, it can be stated that the wheat semolina (0.081 ± 0.005 g) and wheat flour (0.069 ± 0.007 g) substrate used as control gave the best results for the final body weight. In terms of plant raw materials and by-products, sweet potatoes (0.063 ± 0.007) can only be recommended as substrate, while may turnip tuber and may turnip leaf produced significantly lower final body weight results (MT=0.034 ± 0.002 g ; ML= 0.036 ± 0.002 g). The nutrient composition of the larvae was not affected by the substrate, these results confirmed the high protein and fat content reported in the literature. The results with the production parameters were contradicted by the micronutrient content. Larvae reared on may turnip leaf (ML) and tuber (MT) showed the highest values for most of the macro- and microelements (potassium, calcium, magnesium, iron, zinc, copper) tested.
-
Nitrogen Supplying Capacity of Brown Forest Soil under Different Cropping Practices and 0.01 M CaCl2 Soluble Organic Nitrogen
17-23Views:364The best known and most remarkable example of continuous production in Hungary is the Westsik’s crop rotation experiment, which was established in 1929, and is still in use to study the effects of organic manure treatment, to develop models, and predict the likely effects of different cropping systems on soil properties and crop yields. In this respect, Westsik’s crop rotation experiment provides data of immediate value to farmers concerning the applications of green, straw and farmyard manure, as well as data sets for scientific research.
Although commonly ignored, the release of nitrogen by root and green manure crops has a significant impact on soil organic matter turnover. The design of sustainable nitrogen management strategies requires a better understanding of the processes influencing nitrogen supplying capacity, as the effects of soil organic matter on soil productivity and crop yield are still very uncertain and require further research. In the treatments of Westsik’s crop rotation experiment, nutrients removed from soil through plant growth and harvesting are replaced either by fertilisers and/or organic manure. Data can be used to study the nitrogen supplying capacity of soil under different cropping systems and its effect on the 0.01 M CaCl2 soluble organic nitrogen content of soil.
The aim of this paper is to present data on the nitrogen supplying capacity of brown forest soil from Westsik’s crop rotation experiment and to study its correlation with hundredth molar calcium-chloride soluble organic nitrogen. The main objective is to determine the effects of root and green manure crops on the nitrogen supplying capacity of soil under different cropping systems. The nitrogen supplying capacity was calculated as a difference of plant uptake, organic manure and fertiliser supply.
The 0.01 M CaCl2 soluble organic nitrogen test has proved reliable for determining the nitrogen supplying capacity of soils. Brown forest soils are low in organic matter and in the F-1 fallow-rye-potato rotation, the nitrogen supplying capacity was 15.6 kg/ha/year. 0.01 M CaCl2 soluble organic nitrogen content was as low as 1.73 mg/kg soil. Roots and green manure increased the nitrogen supplying capacity of soil by more than 100%. This increase is caused by lupine, a legumes crop, which is very well adapted to the acidic soil conditions of the Nyírség region, and cultivated as a green or root manure crop to increase soil fertility. -
Adequate responses to plant protection policy
33-35Views:169The head of crop protection in the Central Agricultural Office offers a survey of the lately reconstructured official structure, outlines the sections of Central Directorate, sketches the roles of County Government Bureaues. To keep the standard of knowledge changes are necessary to make in the higher education of plant protection specialists. The prersentation will concern the contacts between researches made on universities and agricultural official directorates. It is analized the regulation of present and future pesticide usage, the possible alternatives of reduced quantity pesticide usage including the application of Integrated Plant Management (IPM) as well. The tasks of national activity according to the EU direcives about sustainable pesticide usage touch the problems of plant protection machinery and environment safety. It is summarized the tasks of official directorate, chamber of crop protection specialists, moreover practice of plant protection for the nearest future.
-
Experiences of organizing the social institutions into non-profit companies in Hajdú-Bihar county
99-102Views:153The study attempts to find solutions for relieving the major serious economic and social problems which are resulted partly by the economic crisis, mainly by demographic processes ( decrease of population, declining economic activity, ageing) and which occur all over Europe. In 2007, in Hungary, the Local Government of Hajdú-Bihar county started to reform the social institutions sytems in a unique way in the interest of operating these systems economically. The experiences, gained after the conversion, show that the companies as social institutions maintainers are able to work properly more efficiently, with less government support while they meet the professional requirements, and the management who does the control is competent
and innovative. -
Effects of cultivation practices and hybrid selection on endofusariosis and mycotoxin contamination in maize
69-78Views:416The aim of this study was to determine the levels of deoxynivalenol (DON) and fumonisin mycotoxins in tillage and no-till systems in 2020 and 2021. Additionally, we sought to establish the levels of internal Fusarium infection in different tillage systems. We examined four tillage systems for two years (conventional tillage (plowing), conservation tillage, reduced tillage, and strip-till). The results indicate that toxin levels varied between the two years, with fumonisin production dominant in 2021, while DON toxin production was dominant in 2020. Regarding internal Fusarium infection, the lowest levels were observed in the plowing system in 2020, whereas in 2021, the lowest levels were measured in the reduced tillage system. Like the low DON levels in 2020, the plowing-based tillage system resulted in the lowest fumonisin levels in 2021. Throughout our experiment, the toxin levels were below the permissible limits for unprocessed corn, with DON levels under 1750 μg kg-1 and combined fumonisin B1 and B2 levels under 4000 μg kg-1. However, in areas where toxin contamination is typically problematic, considering the beneficial impact of plowing on reducing toxin contamination might be advisable when planning tillage.
-
The effect of increasing compost rates on the yield and nutrient content of ryegrass (Lolium perenne L.)
127-134Views:271Satisfaction of the increasing needs of humanity causes large environmental load. To provide a livable environment for future generations we have to satisfy our needs with the use of sustainable management. This is one of the biggest challenges of nowadays.
The amount of wastes emitted in increasing volume can be decreased by the recycling of them. The disposal of waste materials formed in the public spaces of cities and during the processing of agricultural row materials and by-products in landfills is inconceivable, so they must be recycled.
These materials mostly with organic compounds could be the primary substrates of composts. Completed with suitable additives, and applied appropriate treating technology, composts are capable to supply horticultural plants with nutrients. Composting wastes and byproducts not just decreases the amounts of deposited waste materials, but increases the nutrient (macro- and micronutrients) content of soils, so this is an environmentally friendly and alternative way of nutrient management of plants. -
Environment-friendly nutrient supply in the area of NYÍRERDŐ Zrt
111-116Views:202The widespread realization of environmental friendly management is an important segment of seeking sustainable technological and
technical solutions. The methods ensuring sustainable development by exploiting natural facilities have great significance. Bacteria-based
biofertilizers and wood ash are good examples of them. Using bacteria-based biofertilizer means a kind of biofertilization that is using the
possibilities provided by the ecosystem. -
Interpretation of sustainability in the utilization of renewable energy sources
61-64Views:236The utilization of renewable energy sources (res) is crucial regarding to sustainable reconstruction of energy systems. The target is a balanced, sustainable development of Hungarian energy management considering equally the ecological, social and economic aspects. There are many different technologies of utilization of res varied by sources, conversion processes, size and products. The comparison of each technology and their sustainability assessment are required by the importance of efficient remodeling of energy infrastructure. The group of attributes was composed by numerous important parameters in the course of our analysis with the choice experiment (ce) methodology. The estimation of each attributes’ influence on the individual’s preferences and choices was possible by this method and the preferences of the statistical population was concluded. So thus the utility derived from each attribute was estimated. The result of the ce analysis for the population of experts is demonstrated in the current phase of our research.
-
From Organic to Precision Farming (Contemporary Publication)
81-86Views:149The paper presents a short review of the different types of farming systems:
Biofarming, Organic farming, Alternatíve farming, Biodynamic farming, Low input sustainable agriculture (LISA)
Mid-tech farming, Sustainable agriculture, Soil conservation farming, No till farming, Environmentally sound, Environmentally friendly, Diversity farming
Crop production system, Integrated pest management (IPM), Integrated farming, High-tech farming
Site specific production (SSP), Site specific technology (SST), Spatial variable technology, Satellite farming.
Precision farming
It concludes that the various systems are applicable in different ratios and combinations depending on the natural and economic conditions.
The author predicts an increase in precision technologies , the first step being the construction of yield maps compared with soil maps and their agronomic analysis. Based on this information, it will be necessary to elaborate the variable technology within the field, especially for plant density, fertilization and weed control.
The changes in weed flora during the past fifty years based on 10.000 samples within the same fields using the weed cover method are presented. -
Greenhouse gas emissions and Europe 2020 strategy
241-244Views:192Common Agricultural Policy has identified three priority areas for action to protect and enhance rural heritage: (i) the preservation and development of natural farming and traditional agricultural landscapes; (ii) water management and sustainable use and (iii) dealing with climate change. Measures of Rural Development Plan in EU countries promote the development of agricultural practices for preserving the environment and safeguarding the countryside. This is achieved by targeting rural development and promoting environmental friendly, sustainable practices, like agri-environment schemes. Farmers are encouraged to continue playing a positive role in the maintenance of the countryside and the environment. Changes in total emission between 1990
and 2007 do not show any correlation with the total GHG emission. GHG emission was reduced in Hungary, Slovakia, Lithuania, Czech Republic, Romania, Poland, Estonia and Bulgaria, where GHG efficiency is low. -
Comparative analysis in residential property price level and price dynamics in urban and rural areas of Hajdú-Bihar County
85-90Views:207In modern market economies residential real estate prices, price shifts and their correlations with macroeconomic factors are surveyed quite frequently. However, in contrast with the wide scope of foreign examples, so far existing analyses in Hungary have ignored examining relation and extensity of macroeconomic indicators and failed to examine their effect on real estate pricing. The scope of this survey is to highlight these potential correlations and thus develop new aspects of analysis. Although the examination needs further extension both in time and space, the results of this survey may help to understand the importance of the responsible management of the most precious element of national wealth from the perspective of sustainable rural development.
Based on my preliminary results, there exists a strong correlation between the number of inhabitants of a settlement and the average real estate prices. Nevertheless, the correlation seems to be significant only for cities. In the case of smaller settlements the correlation still exists but at a lower level. As opposed to the results of former publications and my own expectations, no direct link could be tackled between the amount of income tax paid by private individuals and real estate prices either in the cities or in the villages within the territory and time span examined in my analysis. Although this correlation is measurable on a macro-economic level, my micro-regional analyses revealed the complexity of asset pricing and price volatility. Continuing this survey, my goal is to identify the hidden factors influencing real estate prices, whose thorough mapping may promote conscious rural development.
-
Technological development of sustainable maize production and its effect on yield stability
379-388Views:340In 2015 and 2016, we examined the effect of NPK nutrients, sowing date and plant density on yield on typical meadow soil. The amount of precipitation was 282.0 mm in 2015 (January–September), 706.0 mm in 2016 and the 30-year averageis 445.8 mm.Agrotechnical factors:– Experiment a)5 Dow AgroSciences hybrid with three sowing dates and three plant densities– Experiment b)In 2015 eight, in 2016 ten hybrids with different genetic characteristics and growing seasons, with control (without fertilization), N80+PK and N160+PKtreatments, five plant densities (50–90 thousand) with 10 thousand plants difference between the different densities.
In a drought year, we reached the higher yield in the earlier sowing date and with the lower lower plant density of 70 thousand plants ha-1-. The maximum yield, depending on the agrotechnical factors, was 10–12 t ha-1 in 2015, while in 2016 it was 14–16 t ha-1. Yield stability can be increased using hybrid-specific cultivation techniques. -
Long-term experiments on chernozem soil in the University of Debrecen
357-369Views:452The impact of agrotechnical management practices (nutrient and water supply, crop rotation, crop protection, genotype) on the yields of winter wheat and maize and on the soil water and nutrient cycles was studied in long-term experiments set up in 1983 in Eastern Hungary on chernozem soil. The long-term experiments have shown that nitrogen fertilizer rates exceeding the N-optimum of winter wheat resulted in the accumulation of NO3-N in the soil. Winter wheat varieties can be classified into four groups based on their natural nutrient utilization and their fertilizer response. The fertilizer responses of wheat varieties depended on crop year (6.5–8.9 t ha-1 maximum yields in 2011–2015 years) and the genotypes (in 2012 the difference was ~3 t ha-1 among varieties). The optimum N(+PK) doses varied between 30–150 kg ha-1 in different crop years. In maize production fertilization, irrigation and crop rotation have decision role on the yields. The efficiency of fertilization modified by cropyear (in dry 891–1315 kg ha-1, in average 1927–4042 kg ha-1, in rainy cropyear 2051–4473 kg ha-1 yield surpluses of maize, respectively) and crop rotation (in monoculture 1315–4473 kg ha-1, in biculture 924–2727 kg ha-1 and triculture 891–2291 kg ha-1 yield surpluses of maize, respectively). The optimum fertilization could improve the water use efficiency in maize production.
Our long-term experiments gave important ecological and agronomic information to guide regional development of sustainable cropping systems.
-
Portable snapshot spectral imaging for agriculture
221-225Views:389High-resolution proximal and remote sensing applications can consolidate sustainable, prevention- and precision-oriented crop management strategies to decrease production risks. This paper shows significant perspectives, own developments and technical aspects of high resolution remote sensing in the context of field applications. Moreover, we provide an overview of snapshot hyperspectral imaging and potential field video sensors to identify areas of interest for their future development. One of the main conclusions of our paper is that non-scanning snapshot hyperspectral imaging technology may enable researchers to overcome the gap in the “point to image” transition of field sensing, while providing a flexible solution for regular variable-rate applications.
-
Landscape use of protected areas in the Hódmezővásárhely micro-region
179-193Views:210One of the biggest questions of developing rural areas is that people and organisations living and making their activity there how and in what measure utilize the local or obtainable external
resources. The concept of the landscape expresses the direct connection of the natural resources with the socio-economic processes. This is a two-way connection, (1) on the one hand the single landscapes provide the unique combination of natural conditions for the socio-economic utilisation which is different from other landscapes, (2) on the other hand as the result of the interaction of natural spheres together with the social and economic spheres the landscapes change in a different manner and in a different measure. The landscape as a territorial unit and as a resource is inseparable from the natural resources, and the nature
conservation plays an increasingly important role in the use of the landscape and landscape management, which is an essential task not only in protected areas, but everywhere. The natural resources, the landscape, the nature conservation and the landscape use are related tightly, in which the so-called ecological/biological resources and their sustainable use have a
significant role. -
Slovenian economy in the grip of credit crisis – How to proceed?
19-25Views:239The Slovenian economy has been through steep ups and downs post-EU accession (2004), and is at the crossroads again. The period 2004–2008 was characterized by balanced monetary and fiscal policies resulting in the adoption of the Euro (2007), coupled with overheated economic growth and propelling corporate indebtedness, fuelled by rapid credit expansion from cheap and abundant foreign funding.
The global financial crisis has exposed the “home-grown” vulnerability of the Slovenian economy, bringing about the second largest GDP fall (9.4%) in the Eurozone after Greece, with a double-dip recession (2009, 2012–13). Growth rebounced in 2014 to 2.6% from its low, but the competitiveness of the Slovenian economy continued to slide in international rankings. For further recovery Slovenia, squeezed by high public debt at 82% of GDP, credit contraction despite EUR 5bn state aid injected into the 70% domestically (basically state) owned banking sector, and the continued threat of massive bankruptcy and debt overhang in the corporate sector, has 3 fundamentally different policy options.
− Profound restructuring of the banking system and the real sector, on the basis of earnest privatization and voluminous FDI inflow.
− Slow creditless recovery due to half-hearted reforms in the financial system and corporate sector.
− Substituting wide-ranging micro level restructuring with Government-stimulated credit expansion, reproducing current tensions in even higher magnitudes in the future.
In the current state of the Slovenian economy, equity-led growth, combined with far-reaching institutional reforms seems the only choice in laying the foundation for long-term sustainable economic development. This study outlines the critical further steps in re-invigorating the financial system, utilizing also the proposals elaborated by the author and his banking team for the Slovenian macro policy decision-makers.