PM FICO PRESENTS POLICY AGENDA FOR NEXT FOUR YEARS

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

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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

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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)

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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

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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

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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

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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