VZCZCXRO1619
PP RUEHIK
DE RUEHSL #0498 3311420
ZNR UUUUU ZZH
P R 271420Z NOV 09
FM AMEMBASSY BRATISLAVA
TO RUEHC/SECSTATE WASHDC PRIORITY 0287
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RHEHAAA/NSC WASHINGTON DC
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
RUEHSL/AMEMBASSY BRATISLAVA 0335

UNCLAS BRATISLAVA 000498 
 
SIPDIS 
 
STATE FOR EUR/CE M. LIBBY AND J. MOORE 
STATE FOR INR/EUR A. HARMATA 
 
E.O. 12958: N/A 
TAGS: EINV ECON PGOV LO
SUBJECT: SLOVAK PRESIDENT SIGNS CONTROVERSIAL "STRATEGIC ENTERPRISES" 
LAW 
 
REF: BRATISLAVA 464 
 
¶1. (U) Despite strong, unified opposition from both labor unions 
and the business community, President Gasparovic yesterday 
signed the "Strategic Enterprises" law (reftel) that was rushed 
through Parliament with little debate earlier this month.  All 
of the international chambers of commerce present in Slovakia 
opposed the legislation, and ten of the chambers took the 
somewhat unusual step of sending a joint letter to the President 
asking that he veto the law.  There was also considerable 
domestic opposition, as both the Trade Union Confederation and 
the Slovak Federation of Employers Association--which has 
enjoyed good relations with the current government--spoke out 
against the legislation. 
 
¶2.  (SBU) Jake Slegers, Executive Director of the American 
Chamber of Commerce in Slovakia, told us he was a bit surprised 
that Gasparovic signed the law.  He said that the President's 
office had indicated to him in the past week that a veto was 
likely, and he told us of a November 9 meeting between labor, 
business, and government leaders presided over by Labor Minister 
Viera Tomanova, where all sides agreed to jointly recommend that 
Gasparovic veto the legislation.  Stressing that opposition to 
the legislation existed even at the cabinet level, Slegers 
speculated that PM Robert Fico personally pressured Gasparovic 
to sign the law. 
 
¶3. (U) As described reftel, the Strategic Enterprises Law will 
allow the Slovak government to nationalize "strategic" companies 
whose shutdown would have a "wide social impact."  Minister of 
Economy Lubomir Jahnatek has downplayed the legislation, 
describing it simply as an anti-crisis measure that will expire 
at the end of 2010.  Many observers see the law primarily as an 
effort to avoid the loss of 1500 jobs at the Novacke Chemicke 
Zavody (NCZ) chemical factory that recently declared bankruptcy, 
and not necessarily directed at other companies.  Fico has 
stated publicly, however, that he may seek to extend the law 
past its expiration next year. 
 
 
COMMENT 
 
¶4. (SBU) This law was a rushed effort to head off the potential 
political damage that would result from job loss at the factory 
in an election year.  The cabinet clearly did not anticipate the 
firestorm that followed the legislation's approval, and it's 
surprising that the law wasn't subsequently modified to make it 
more palatable to business and labor interests.  Given the 
damage this law is likely to cause to relations with business 
leaders, Fico or someone in his immediate circle must have 
pushed very hard to have the law signed. 
 
EDDINS