VZCZCXRO9559
PP RUEHAG RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ
RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHSL #0287/01 1011458
ZNR UUUUU ZZH
P 111458Z APR 06
FM AMEMBASSY BRATISLAVA
TO RUEHC/SECSTATE WASHDC PRIORITY 9718
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY

UNCLAS SECTION 01 OF 02 BRATISLAVA 000287 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL KDEM PHUM SOCI LO
SUBJECT: SMER PARTY CONFERENCE PRESENTS A MODERATE FICO 
 
 
 ¶1. (U) Summary: Party chairman Robert Fico presented an 
unexpectedly moderate position at Smer - Socialna 
Demokracia's weekend conference. He acknowledged for the 
first time that some of the current government's reforms 
might be useful, and laid down strict adherence to European 
rules allowing Slovakia to adopt the Euro by January 1, 2009 
as a precondition for a future ruling coalition that includes 
his party. Fico was immediately followed by a speaker who 
criticized the concentration of foreign firms in Slovakia and 
the impact of globalization, and questioned whether economic 
growth is truly necessary to fund social benefits. 
Interestingly, Fico and several others left the dias during 
this presentation. End Summary. 
 
¶2. (U) In a conference room decorated with the words of 
Article 55(1) of the Slovak constitution, "The economy of the 
Slovak Republic shall be based on the principals of a 
socially and ecologically oriented market economy," Chairman 
Fico delivered a 45-minute speech at his party's weekend 
conference. Fico opened by reminding the audience twice that 
the draft document included in the discussion materials was 
not a platform for the upcoming campaign, but merely a 
working discussion document. He then repeated the same 
warning a third time for guests from the diplomatic corps, 
and a fourth time for members of the media. (Comment: Smer's 
official platform should be released at the end of April or 
the beginning of May. End Comment.) 
 
WHAT'S WRONG IN SLOVAKIA? 
----------------------------- 
 
¶3. (U) Fico gave three reasons why Slovaks should be 
dissatisfied with the current government: 
- Slovakia has the second highest unemployment in the EU; 
- Slovakia has the most extreme regional disparities in 
economic development; 
- Slovaks have the lowest salaries among EU member states. 
 
Fico added that even that lowest average salary is actually 
not as good as it seems, since high economic disparity means 
that the majority of Slovaks earn 5,000 SKK (APPROX USD 160) 
per month less than the average. Answering a common criticism 
of his party, Fico acknowledged that Smer includes several 
very wealthy individuals. He pointed out, however, that Smer 
also embraces many poorer members. All that matters is that 
every member of the party embrace the principle of 
solidarity, and Fico said he was prepared to remove any 
member who does not. 
 
A PREVIEW OF SMER'S PLATFORM 
---------------------------- 
 
¶4. (U) Fico announced that Smer's platform would stand on 
three pillars: a return to the "social state," community 
solidarity, and a return to a "just state." He also listed 
three principles that his party would insist upon before 
joining any coalition government: 
- that all parties would be consulted on major legislation, 
whether they were in government or not, to ensure that future 
reforms would not risk being overturned every four-year 
election cycle; 
- that long-term economic growth of at least 3 percent must 
be a priority since only economic growth can guarantee the 
resources needed for the return to a social state; 
- that Slovakia will strictly adhere to all European rules so 
that the Euro can be adopted by January 1, 2009. 
 
¶5. (U) Fico acknowledged that not all of the reforms of the 
current government have been bad for Slovakia, and said a 
Smer government would be willing to keep reforms that have 
been good for Slovakia and fix those that are merely broken. 
Some of the reforms, however, cannot be fixed and must be 
repealed. Fico gave as an example of the later the reforms to 
the pension system and the health-care sector which were 
enacted in order to allow a specific group to take control of 
the last public wealth and public property not already 
privatized. 
 
¶6. (U) Fico asked rhetorically if anyone doubted that another 
right-oriented government would quickly seek to enact 
University tuition fees, thus further increasing disparity 
and providing an opening for the school system to have its 
funding cut even further. Fico said that businesspeople had 
complained to him that Slovakia's educational and research 
facilities have been losing quality, and this is making 
Slovakia a less attractive place to do business. Fico 
compared taking money from the Education and Research sectors 
to a theft of the future resources of the Slovak state. 
 
OTHER VOICES HEARD 
------------------ 
 
 
BRATISLAVA 00000287  002 OF 002 
 
 
¶7. (U) Fico was followed at the podium by an economist, Dr. 
Peter Stanek of the Slovak Academy of Sciences, who opened by 
citing the high number of foreign owned firms in Slovakia as 
a risk to independence and economic security. Fico sat 
briefly with his head in his hands and then got up and left 
the table, only to return as the next speaker began. During 
Stanek's speech at least four other men left the main table. 
Stanek also questioned the merits of globalization, expressed 
concern about Slovakia's energy security, and argued that 
economic growth is not a precondition for development. 
 
¶8. (SBU) Comment: Fico spoke in shirt-sleeves after inviting 
the assembled delegates in the over-crowded and over-heated 
conference room to remove their jackets and loosen their 
ties. Poloff estimates that female delegates and guests 
constituted no more than 5 percent of the total. Fico seemed 
at times to be as concerned with tempering expectations as 
with raising spirits. The Czech PM arrived in the afternoon 
and gave a speech in support of Smer during which he referred 
to Fico as "my dear Robert" ("mily Robert"). The only 
Ambassador present was Russian Ambassador, though several 
Embassies sent representatives. End Comment. 
VALLEE