SLOVAK CENTRAL BANK GOVERNOR LOBBIES FOR THIRD TERM,

C O N F I D E N T I A L BRATISLAVA 000452 SIPDIS STATE PASS TO USTR FOR R. DRISCOLL STATE FOR EUR/CE TREASURY FOR L. NORTON E.O. 12958: DECL: 10/23/2019 TAGS: ECON EFIN PGOV LO SUBJECT: SLOVAK CENTRAL BANK GOVERNOR LOBBIES FOR THIRD TERM, INTIMIDATES JOURNALIST CLASSIFIED BY: Keith Eddins, Charge d'Affaires, a.i.. REASON: 1.4 (d) ¶1. (C) SUMMARY: After vigorous behind-the-scenes lobbying by Ivan Sramko, Governor of Slovakia's Central Bank, the government has submitted a proposal to Parliament that would allow him to seek a third term in office and slash the Bank's board from 11 members to five. This move is widely seen as a further weakening of the independence of the Central Bank and a reward to Sramko for his tacit support of PM Robert Fico. A journalist who published two articles quoting critics of the proposal tells us that he was intimidated and threatened by Sramko. END SUMMARY. ¶2. (U) Nearing the end of his second five-year term as Governor of Slovakia's Central Bank, Sramko has reportedly pushed hard to amend the law limiting the position to two terms. The job, although less important now that most monetary policy has devolved to the European Central Bank, remains prestigious and highly sought after. The proposed amendment was quietly attached to an unrelated piece of legislation, provoking opposition parties to charge that the changes were being rushed through Parliament without proper consideration. ¶3. (SBU) According to our contacts, Sramko was widely viewed as a competent and independent Governor whose behavior changed soon after PM Fico took office in 2006. In contrast with his willingness to assert the independence of the Central Bank and openly criticize policies of the preceding Dzurinda government, Sramko's voice has been notably absent in public discussion of the rapidly expanding budget deficit. In addition, Sramko came under heavy criticism from the media for his handling of the May 2008 Euro conversion rate scandal, with some charging that he personally intervened to ensure that the results of the Central Bank's investigation would spare the Fico government embarrassment. ¶4. (C) When we sought background information from a journalist who covers the Central Bank, Lubos Jansik, he told us that Sramko had retaliated against him for writing two articles that included several quotes criticizing the amendment. In addition to calling Jansik's editor-in-chief at the daily newspaper SME three times to complain about the articles, Jansik told us that Sramko personally confronted each of the people quoted in the articles and told them to "correct" their statements. Jansik, who is pursuing a PhD at the University of Economics in Bratislava, also told us that a Central Bank employee who serves on a governing board at the university called him to say that his continued studies could be threatened by his reporting. ¶5. (C) COMMENT: Given Sramko's buttoned-up banker's mien, we were somewhat surprised to hear about his unsubtle attempts to pressure the SME journalist. Unfortunately, it is not uncommon in Slovakia for prominent government officials to resort to threats and intimidation in an effort to silence critics. We have received similar firsthand accounts from other reporters. Thus, while PM Fico this week likened his treatment of the media to President Obama's of FOX News, it is not surprising that Reporters Without Borders announced this week that Slovakia has fallen from 7th to 44th place in terms of press freedom. EDDINS