VZCZCXRO5776
RR RUEHAST
DE RUEHSL #0666/01 2211632
ZNR UUUUU ZZH
R 091632Z AUG 06
FM AMEMBASSY BRATISLAVA
TO RUEHC/SECSTATE WASHDC 0191
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 06 BRATISLAVA 000666 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
COMMERCE FOR MROGERS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON PHUM LO
SUBJECT: PM FICO PRESENTS POLICY AGENDA FOR NEXT FOUR YEARS 
 
BRATISLAVA 00000666  001.2 OF 006 
 
 
 ¶1. (SBU) OVERVIEW AND COMMENT.  One month after Slovakia's 
new governing coalition took office, Prime Minister Robert 
Fico has presented the government's policy statement, a 
four-year agenda determined by the governing three-party 
coalition.  Bureaucrats had drafted an early version of the 
government program statement, leaving it void of Smer's 
campaign rhetoric. Fico then added his imprint on the final 
document with eight pages of modifications to incorporate his 
broad scope of pre-election promises.  Fico insisted on 
including, for example, the promise of a lower VAT rate for 
certain goods, the elimination of fees for doctors' visits 
and medicines, and the specific use of the word "withdrawal" 
in reference to Slovak troops in Iraq.  His varying messages 
appeal to diverse voters: ideological leftists, the 
provincial poor who believe Fico can better their lives by 
legislation, and his big business supporters.  While the 
final version of the government program clearly demonstrates 
that Fico is in charge, it fails to show a realization on his 
part that he is now the Prime Minister who must deliver, no 
longer the leader of the opposition who need only criticize 
and make promises. 
¶2. (SBU) Fico's version of the wide-ranging policy document 
was submitted to parliament on August 1, debated, and 
approved by majority vote (80 for, 55 against, 15 absent) on 
August 4.  The program statement emphasizes Fico's domestic 
focus.  The chapters on economic, social, health, education, 
cultural, and judicial policy account for almost ninety 
percent of the statement, of which economic policy alone 
comprises a full third.  Foreign and military policy, 
including EU and NATO issues, make up less than ten percent. 
The foreign policy portion makes the right noises on NATO but 
speaks of "activating" relations with Russia while just 
"developing" relations with the U.S.  There is no mention of 
support for the spread of democracy abroad.  The program 
statement itself is not binding legislation.  It offers 
guidelines for governmental action but leaves out precise 
details.  For example, it does not specify which items will 
benefit from a lower VAT rate nor what that rate will be. 
Most importantly, it also does not explain how the government 
will fund the many increases in social benefits.  The 
opposition, led by former PM Dzurinda, is focusing its 
criticism on this gap.  END OVERVIEW AND COMMENT. 
¶3. (U) The program statement, an extensive document of 54 
pages, is divided into 9 chapters, with many subchapters. 
The chapters are: Principles and Values, Economic Policy, 
Social Policy, Health Care, Knowledge-Based Society 
(Education), Culture, Democracy and Rule of Law (Civil 
Society, Judiciary, and Public Services), National Defense, 
and Foreign Policy.  The complete document can be found in 
English on the website of the Slovak government at 
http://www-8.vlada.gov.sk/index.php?ID=1672.  The following 
is a summary of the sections, with several quotations to give 
a feel for the political language of the document. 
 
¶4. (U) Summary of Slovakia's Government Program Statement, 
with (SBU) comments as marked: 
 
CHAPTER 1. PRINCIPLES AND VALUES OF THE PROGRAM STATEMENT (2 
pages) 
"The Program Statement of the Government of the Slovak 
Republic builds on continuity with the former government 
everywhere where it is expedient and reasonable.  But the 
objective and expressive need to change the approaches taken 
in recent years will be prevalent." 
The three basic principles on which the government program 
rests are human dignity, the welfare state, and an economy 
based on values of a socially- and environmentally-oriented 
market economy. 
 
CHAPTER 2. MACROECONOMIC FRAMEWORK, PUBLIC FINANCE, AND 
ECONOMIC POLICY (18 pages) 
"Public finance and taxes will be projected and utilized as 
the main economic instrument to build a modern social state 
with the aim of minimizing social exclusion and removing the 
increasing regional disparities and social imbalance." 
Another objective is to fulfill the criteria to introduce the 
Euro by January 1, 2009, and all economic, financial, 
budgetary, price, investment support and other economic 
policies will be closely coordinated to achieve this goal. 
-- "Millionaire's tax" - GOS will introduce a higher personal 
income tax rate for the "higher-than-standard" income. 
-- Selective taxation of monopolies: "Natural monopolies and 
dominant companies will face tough regulations. If the 
standard system of their regulation is proven as ineffective 
or insufficient, the GOS may consider a selective taxation of 
these companies as a legitimate tool to ensure its goal of 
protecting citizens from rising energy costs." (NOTE: in 
Fico's words: "It is not in the interest of this government 
 
BRATISLAVA 00000666  002.2 OF 006 
 
 
to have natural monopolies, or dominant companies, whose 
profits are increasing, pay low taxes and remain free from a 
dividend tax, while at the same time energy prices keep 
rising."  END NOTE.) 
-- GOS will lower the VAT rate for selected items beginning 
in 2007. 
-- GOS will halt privatization of strategic companies; the 
government will re-define which companies and institutions 
will be considered strategic. The government respects the 
privatization done so far and will stick to unalterable 
conditions in legitimate privatization agreements. 
-- Energy security - the government will prepare a strategy 
of energy security, guaranteeing self-sufficiency in 
electricity production. GOS will support the diversification 
of sources and routes for oil and gas. GOS will support 
liberalization of the market for electricity and gas. 
-- Nuclear energy - GOS will support construction and 
operation of new power plants including the third and fourth 
bloc of the Mochovce nuclear plant. 
-- Transportation - GOS will complete certain sections of 
highways. The government will maintain its dominant position 
in railway companies. 
-- Agriculture - GOS will increase subsidies to farmers, 
within the framework of EU funds. GOS will solve the issue of 
land without known owners with new legislation. 
-- Housing - GOS will create conditions for construction of 
rental flats for young families subject to the availability 
of funds from the state budget. 
-- Regional development - GOS will strengthen of 
responsibilities of regional governments, GOS will prepare a 
vision of regional development for all Slovakia.  The issues 
of the Roma community will be addressed through regional 
development. 
 
CHAPTER 3. SOCIAL POLICY (8 pages) 
-- Employment - GOS considers the highest possible employment 
to be one of the basic criteria of success of domestic 
economic and social policies.  The Government will adopt 
vigorous measures focused on strengthening social inclusion, 
prevention of exclusion from the labor market, and support of 
disadvantaged groups' integration in employment, particularly 
concerning graduates, persons with disabilities, mothers with 
children, and persons close to retirement age.  Special 
attention will be paid to the support of marginalized members 
of the Roma communities and reduction of regional differences 
in employment, unemployment, and labor productivity, 
particularly in regions with high unemployment. 
-- Labor - GOS will prepare a new Labor Code with the goal to 
increase protection of workers. The government will regularly 
increase the minimum salary.  The government will develop 
efforts to establish a tripartite council at the highest 
level as an organ of tripartite consultations based on the 
principle of equal social partnership of (1) government, (2) 
labor unions and (3) employers' organizations. 
-- Pensions - GOS will reform the system of pension insurance 
to stabilize the first pillar. The second, capitalization 
pillar, will remain voluntary. 
-- Roma - "To eliminate the causes of poverty and social 
exclusion of individuals and groups, including marginalized 
Roma communities, the government will adopt measures with an 
emphasis on creating conditions for implementation of 
non-financial measures such as, for example, social services, 
social and legal protection measures, social guardianship, 
community development, support of local partnership of social 
inclusion, subsidy programs to improve equal opportunities, 
motivation and support for access to education and health 
care also with the objective of realistic strengthening of 
social cohesion. At the same time, the Government will 
consequently require adherence to the principle of 
subsidiarity and performance of competencies by all 
responsible entities." 
-- Family Support - GOS will increase the payment to families 
upon the birth of the first child to at least SKK 15,000 (USD 
500) and other parental tax bonuses.  The GOS will support 
the increase of availability, flexibility, and equality of 
family social services and enforce legislative changes for 
the protection of children. 
-- Equality - GOS shall support equality of men and women at 
all levels of governance.  The government shall implement 
steps to eliminate any forms of discrimination, including 
discrimination based on gender, religious conviction or 
belief, racial origin, national or ethnic origin, medical 
disabilities, age, and sexual orientation.  GOS will work 
towards elimination of domestic violence.  GOS shall exert 
maximum efforts for the establishment of the European Gender 
Equality Institute in Slovakia. 
 
CHAPTER 4. HEALTH CARE (3 pages) 
 
BRATISLAVA 00000666  003.2 OF 006 
 
 
The Government must ensure access to adequate health care to 
all its citizens. The scope of this care must be defined by 
the law and health care must be financed from health 
insurance. 
-- Fees - Beginning in 2006, the government will cancel some 
fees that are not directly related to the provision of health 
care while ensuring compensation for the providers. 
-- Voluntary health insurance - GOS will consider tax relief 
against payments towards voluntary health insurance. 
-- Mandatory health insurance - In 2007, the GOS will 
increase the state contribution towards health insurance 
premiums from four percent to five percent of the average 
wage.  The Government will ensure that public spending in 
health care will increase as a percentage of GDP. 
-- Health insurance overhead - GOS will limited by law the 
amount of health insurance companies' operating costs as of 
2007 to a maximum of four percent of the mandatory health 
insurance premiums collected. 
 -- Health care facility management - GOS will support 
decentralization in health care management while introducing 
a state regulatory role for all health care facilities.  In 
hospital care, it will enforce the role of the state as the 
owner of faculty health care facilities, facilities with 
nationwide scope, and those performing special tasks in 
emergency situations. 
 
CHAPTER 5. KNOWLEDGE-BASED SOCIETY (7 pages) 
The government will improve the implementation of the 
National Lisbon strategy MINERVA, particularly with respect 
to investing in human potential, employment, innovation, 
science and research.  Permanently sustainable development is 
a priority to the GOS, thus it will initiate a National 
Center of European and Global Studies.  Use of information 
and communication technologies in all areas of life is of 
vital importance for the Slovak society. 
-- Education - GOS will create favorable conditions for 
improving education, emphasizing patriotism, national, 
historic, and cultural values in schools at all levels.  GOS 
will increase the quality of minority schooling, particularly 
the instruction in one's mother tongue, which cannot, 
however, be to the detriment of the official Slovak language. 
In schools, GOS will implement financing from diverse sources 
aimed at reaching the five percent level of GDP. 
(SBU) COMMENT. It is in the area of education where one finds 
the greatest imprint of the Slovak Nationalist Party (SNS). 
We will watch this closely and speak out as necessary.  END 
COMMENT. 
-- Regional schools - GOS will draft modern legislation on 
education as a basic prerequisite of school reform and also a 
bill on teachers' status and competencies.  This should 
result in a systemic change of education, particularly in 
improvement of language skills, computer skills and 
communication abilities using modern information and 
multimedia technology in the process of instruction.  GOS 
will coordinate professional education with market needs. 
-- Universities - GOS plans to amend the university law 
harmonizing it with the basic goals of the Lisbon strategy. 
It will continue to build centers of excellence together with 
integrated projects that are prerequisites of participation 
of Slovak scientists in EU research projects.  The government 
will draft a new system of financing for state and public 
universities.  No fees for full-time university students will 
be introduced.  It will draft legislation to motivate 
businesses to invest in education, science, and research and 
development. 
-- Science and Technology - GOS will adopt measures to 
support research and science in accordance with Lisbon and 
Bologna strategies, presenting science and technology as the 
main tools of building the knowledge society.  The funding of 
science and technology should gradually reach 0.8 percent of 
GDP.  GOS will establish special grants for the young 
generation of scientists with the goal of stopping the brain 
drain from Slovakia. 
-- Youth and Sports - GOS will consistently implement 
principles of the EU Commission on Youth policy.  GOS will 
draft the Concept of the National Policy on the Youth and 
Children for the period of 2008-2013.  GOS will consider 
establishing a government post of Plenipotentiary for 
Children and Youth.  GOS will draft a legislation dealing 
with sports that will be in harmony with EU legislation. GOS 
will draft a long-term program for building sports 
infrastructure and will support public ads aimed at healthy 
life style of Slovak citizens. 
 
CHAPTER 6. CULTURE (3 pages) 
Protection and use of cultural heritage including promotion 
of original new arts production will be the pillars of 
preserving and strengthening the Slovak identity.  Three 
 
BRATISLAVA 00000666  004.2 OF 006 
 
 
principles will be observed in cultural area: continuity, 
communication, and coordination.  GOS will protect the Slovak 
language as a state language in coordination with scientific 
institutions and Matica Slovenska. 
-- Economic tools - GOS will increase cultural funding to 
harmonize it with EU standards.  GOS will draft new 
legislation on financing culture and will support wide use of 
EU funds for the reconstruction of cultural sites. 
-- Media and audio vision - GOS will create a new 
legislative, financial and organizational framework for 
public radio and TV functioning.  GOS will draft new 
legislation on its press agency (TASR) and review its role as 
a national press agency.  New media legislation will be 
prepared in order to implement a digital transmission system. 
-- Reconstruction and protection of cultural heritage - GOS 
will adopt a new strategy for the development of Slovak 
libraries, museums and arts galleries. 
-- Local and minority culture - Through a grant system, GOS 
will fund the culture of minority and ethnic groups and will 
support Slovak culture in ethnically mixed areas. 
-- Arts and national cultural institutions - GOS will support 
national cultural institutions like Slovak National Theater, 
Slovak Gallery, etc. 
-- Churches and religious communities - GOS respects the 
valid legislation on churches and religious communities and 
the commitments following from it. 
 
CHAPTER 7. DEMOCRACY AND RULE OF LAW (8 pages) 
-- Diversity and Tolerance - GOS will respect the 
multi-ethnic and multi-cultural character of Slovakia and 
will fight any expressions of racial, ethnic, religious and 
political intolerance.  GOS will combat discrimination, 
racism, anti-Semitism, xenophobia, extreme nationalism and 
chauvinism as well as denial of the Holocaust.  GOS will 
create a democratic environment for freedom of thought, 
conscience and religious freedom.  It will respect the role 
of churches, religious communities and other non-religious 
institutions. 
-- Anti-discrimination - GOS guarantees all citizens, 
regardless their gender, race, skin color, language, belief, 
religion, political views, ethnic and social origin, 
property, or social status respect for basic human rights and 
freedoms including the right to choose one's own ethnic 
identity.  However, his/her decision should not be harming or 
discriminatory for others. 
-- NGOs - GOS considers the NGO sector an important social 
pillar and part of a free democratic society.  It will 
conduct a partner dialogue with diverse institutions of the 
civic society. 
-- Roma issues - GOS will support all development programs in 
order to improve the life of the Roma and their integration 
in all areas of society (education, culture, health and 
social care, housing).  It will continue to build facilities 
directly in the regions with numerous Roma communities. 
-- Judiciary and Judges - GOS wants to improve non-partisan 
proceedings and decision-making, increase the quality and 
speed of court procedures, and preserve the social status of 
judges.  GOS will further increase general standards for the 
civic integrity and ethical behavior of judges.  GOS will 
complete the Justice Academy.  GOS will take measures to 
further the independence of the Supreme Court from the 
Justice Ministry.  It will review the possibility of 
establishing an independent Supreme Administrative Court, 
while the administrative agenda at the first and second 
levels will be arranged by district and regional courts.  It 
will review prior court reform and cancellation of some 
district courts. 
-- Judicial corruption - GOS assess the activity of special 
institutions in the fight against bribery and corruption.  It 
will propose measures that will prevent discrimination in the 
judiciary and prosecution and will eliminate political 
interventions in the judiciary. 
(SBU) COMMENT. The opposition is claiming that this language 
reflects a weaker commitment to fighting corruption than that 
of the previous government.  END COMMENT. 
-- Ombudsman - GOS will support the independent status of the 
ombudsman and of the Judiciary Council and will propose to 
allow both the ombudsman and the Judiciary Council to 
initiate proceedings on the conformity of legal regulations 
at the Constitutional Court. 
-- Employees of the court - GOS will preserve the current 
status of the prosecution including the social status of 
prosecutors.  GOS will improve efficiency of the courts, 
management and technology. 
-- Legislation - GOS wants to lower the number of 
governmental legislative proposals and increase their 
quality.  GOS will present proposals of the most important 
legislation pieces for public discussion.  GOS will provide 
 
BRATISLAVA 00000666  005.2 OF 006 
 
 
analysis of the current legal collection of laws and will 
propose changes in cases of contradictory laws. 
-- Legal assistance for the poor - GOS will analyze the 
efficiency of free legal assistance, review possibilities for 
out-of-court settlements, and improve legal services for poor 
citizens. 
-- Prisons and penitentiary institutions - GOS will attempt 
to humanize prisons and modernize the penitentiary system to 
harmonize it with EU standards and international conventions. 
-- Crime - GOS will do its utmost to protect citizens and 
their property and to ensure security for them and their 
families.  GOS will adopt a new program to fight crime.  It 
will reflect new challenges in crime structure and new 
conditions in combating criminality with regard to Slovakia's 
membership in European and Transatlantic organizations. 
-- Terrorism - GOS will adopt necessary measures to improve 
its readiness to anticipate and eliminate terrorist attacks. 
It will improve coordination among intelligence, police, and 
other relevant agencies. 
-- Extremism - GOS will take stricter action against 
extremism.  It will not tolerate any illegal actions by 
members of extremist groups. It will protect the freedoms and 
rights of members of minority groups. 
-- Embezzlement - GOS will fight against economic crime and 
increase the efficiency of its detection. 
-- Drugs - In combating drugs, GOS will follow UN 
conventions, European Strategy for years 2005-2012 and the EU 
action plan for 2005-2008. 
-- Border protection - GOS will draft and adopt a national 
strategy of management and protection of Slovak borders after 
joining the Schengen agreement.  It will complete the 
construction of the Slovak-Ukrainian border crossing, meeting 
Schengen standards. 
-- Police and Emergency Services - GOS will continue to 
modernize the police corps and make it compatible with the EU 
police corps; it will improve readiness to combat corruption, 
organized crime, illegal drugs, and increase reliability in 
providing service to Slovak citizens.  GOS will support 
changes in education and training of the police at all 
levels.  Attention will also be devoted to firefighting and 
emergency corps.  GOS wants to improve cooperation of all 
institutions in case of natural disasters and improve 
prevention in this area. 
-- Migration and citizenship - GOS will unite national 
migration policies and will draft a proposal for establishing 
an Immigration and Naturalization Office.  GOS will review 
rules for granting Slovak citizenship to foreigners and 
implement more thorough checking of applicants. 
-- Public Administration - GOS will initiate an analysis of 
the public administration reform and propose changes.  GOS 
will abolish some regional offices and transfer competencies 
to local self-government. 
 
CHAPTER 8. NATIONAL DEFENSE (2 pages) 
-- NATO and EU - Slovakia is an inseparable part of the 
Euroatlantic space.  Slovakia will adequately contribute to 
collective NATO defense and EU military capabilities.  GOS 
will fulfill commitments resulting from its membership in 
NATO and the EU, including its support for allied forces in 
Slovakia and their security.  It will provide personnel for 
the NATO and EU rapid reaction forces and participate in 
international crisis management operations. 
-- Security integration - GOS will establish an integrated 
security system coordinating all institutions involved in 
managing national defense. 
-- Troop deployment - With regard to the future deployment of 
Slovak troops, GOS will make sure that any deployment will 
have a clearly defined mandate containing criteria for its 
continuation or withdrawal. 
-- Iraq - GOS, in cooperation with all involved parties and 
the Iraqi government, will present an acceptable time table 
for the withdrawal of Slovak troops from Iraq.  At the same 
time, GOS will assist in ensuring stability and peace in Iraq 
by civilian means and is ready to participate in training the 
Iraqi security forces that will take over responsibility for 
stability and security in Iraq. 
-- Military education - GOS will complete the transformation 
of military schools. 
 
CHAPTER 9. FOREIGN POLICY (3 pages) 
(SBU) COMMENT. One of Foreign Minister Kubis's top advisors, 
who claims authorship of this chapter, told us he rejected 
all SNS proposals to emphasize a pro-Slavic foreign policy. 
He further noted that he was confident PM Fico could 
"control" SNS leader Slota on foreign policy issues.  END 
COMMENT. 
Slovakia's foreign policy will be in harmony with the 
national interests of Slovak Republic and GOS will follow up 
 
BRATISLAVA 00000666  006.2 OF 006 
 
 
all positive trends accomplished so far. 
-- NATO and EU membership - Slovakia will strengthen 
partnership and strategic cooperation with NATO and EU.  It 
will take an active role in building EU policies with respect 
to Slovak national interests and European solidarity. GOS 
will strengthen cooperation with EU and NATO member states. 
-- Support for EU issues - GOS will support the ratification 
process of the EU Constitution.  GOS will continue to build 
the joint EU foreign and security policy with special focus 
on strengthening security and stability in western Balkans 
and Eastern Europe.  GOS will support further enlargement of 
EU and will increase efforts to enter the Schengen system as 
soon as possible. 
-- Support for NATO - GOS considers NATO its main guarantor 
of Euro-Atlantic security.  It will respect and satisfy all 
commitments following from its membership in NATO.  GOS will 
continue to strengthen transatlantic ties and partnership 
with member states of the Alliance and will further develop 
its relations with the United States. 
-- Relations with neighbors - GOS will support cross-border 
cooperation in all areas.  Strategic partnership with the 
Czech Republic is of special interest.  GOS will strengthen 
regional cooperation within the Visegrad 4 countries. 
-- Russia - GOS will activate relations with the Russian 
Federation, an important factor of EU security and 
prosperity. 
-- Middle East - GOS declares its interest to contribute to 
strengthening stability in Iraq, Afghanistan and Middle East. 
-- Multilateral efforts - GOS will enforce effective 
multilateralism.  It will support international 
organizations, particularly the UN. As a non-permanent member 
of Security Council in 2006-7, Slovakia will assist in 
resolving world and regional problems, threats and security 
challenges, particularly in respect to terrorism and weapons 
of mass destruction.  It will strengthen its participation in 
UN missions.  In Slovakia's half-year presidency of the 
Council of Ministers of the Council of Europe (Nov 2007 - May 
2008), GOS will devote attention to Roma issues. 
-- Economic diplomacy - GOS will strengthen the economic 
aspect of Slovak diplomacy. 
SAROFEEN