At its first meeting after the summer break, the Slovak Cabinet on Wednesday passed a draft bill enabling imprisonment of merchants if they misuse the euro introduction for inadequate price rises, with remarks. Offenders may be put in jail for six months to eight years for violation of price discipline, with the penalty depending on the amount of damage. The draft amendment to the Penal Code, submitted by Justice Minister Stefan Harabin, has yet to be completed by the Finance Ministry's executive guideline, defining cases in which a merchant violates price discipline. If approved by parliament, the amendment will take effect from October 1, 2008.
Some courts, corporate entities and NGOs opposed the draft amendment within the interdepartmental review process. They claim that the amendment contradicts the Constitution. The Supreme Court pointed to its contradiction to the Constitution, and it also sees contradictions to Slovakia's EU accession agreement, in which Slovakia pledged to accept free market and free price making principles. The National Union of Employers labels it a criminalization of the business environment. It also stated that changes would negatively influence local, as well as foreign, investors.
The Association of Users of Services supported the Justice Ministry's draft amendment. It believes that consumers should be protected by law against unfair and aggressive business practices.