This Country Economic Memorandum is based on the findings of missions that visited the Slovak Republic in December 1996 and January 1997. The report examines the main economic developments of the past few years and the challenges faced by the country in its EU accession quest. It also analyzes the Slovak Republic"s ability to take the obligations of membership that imply full compliance with the acquis-communautaire—the set of rules and regulations applicable to all Member States.