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