Fico runs into first problem - with his own party
Monika Flašíková Beňová called to explain to Smer leadership why she demanded of Fico an explanation of his remarks
The strongest government partner Smer-social democracy has its first serious problem. Instead of its "risky" coalition partners however it must solve the situation created by its party Vice-Chairwoman and European Parliament deputy, Monika Flašíková Beňová. Her open criticism of Smer leader and premier Robert Fico is shortly to be addressed by the Smer leadership council. Party representatives deny talk of an open conflict in the ranks, but intend to demand an explanation from Beňová. "It will definitely be tabled at the Council," confirmed Council member Monika Smolková.
The background? Beňová took exception to Fico's statements on the influence of multinational monopolies and Hungarian socialists on the European socialist movement, and wants an explanation of these declarations. "I'm still a Vice-Chairwoman of this party, and am only referring to things which are true," Beňová told HM.
Beňová's party colleagues were taken by surprise by her comments, and more by the fact that she released them through the media than by the actual criticism of the Premier. "She should have spoken directly to the Chairman. He has his door open to many people in the leadership so that they may mutually discuss conflicts and then release them to the media," according to Smolková. Another Council member, Miroslav Číž, also commented on the complexity of the situation: "She (Beňová) is under the influence of the E.U. atmosphere, needs to feel her freedom, and so makes these declarations. At the moment we're only taking note of this, we'll be interested in its further development." July 12
40 billion leak out of Slovakia
Fresh Premier Róbert Fico and his Smer-SD party even before the elections pledged the taxation of dividends, which failed to cause much panic among foreign investors. Indeed last year more money in dividends left Slovakia than in 2004 in absolute numbers, but corporate profits grew more quickly last year. According to the estimates of Lucia Štekláčová from ING Bank Slovak companies pay out between 35 and 40 billion Crowns to their foreign owners. National Bank of Slovakia estimates put this figure even higher.
Company profits last year increased 47percent against 2004, while dividends paid out went up by "only" 21 percent. This indicates that firms are re-investing part of their profits where they were created - in Slovakia, so these profits serve for the further expansion of their enterprising. Dividend payments currently account for about 2,5 percent of the gross domestic product. This however is not a danger to the economy - the current accounts deficit is covered by continuing investments from abroad. Such reinvested profit and the building of new production capacities has a positive effect on the increasing of the economy as a whole. July 13.
We've never had more expensive petrol
These days, a full tank can mean an empty pocketbook, fuel prices have never been higher. After Wednesday's hike of between 30 and 40 haliers, it takes two hundred crowns more to fill a 50-litre tank than three months ago. We're now paying 42 Crowns for the most popular 95 petrol, and 41,50 for a litre of diesel.
Those planning to use their own cars for holiday trips will also have to count on higher expenses. Everywhere in Europe prices are up, and will not stop rising any time soon. The most you'll pay is in Austria, an average of 44,1 Crowns per litre of 95, and the cheapest, traditionally in Poland, which takes advantage of the high capacity of local refineries and the pipelines crossing its territory.
Some European governments have been trying to dampen the growth of prices, but not always successfully: In Hungary prices have set new records despite the recent lowering of VAT on fuel. A similar fate befell Poland, where the government of Premier Marek Belka attempted to soften last year's steep rises through a consumer tax reduction. In a short time this move proved to have no effect, and the new government of Kazimierz Marcinkiewicz returned the tax to its original level. "The state literally dedicated several hundred millions to the petrochemical concerns by the reduction of the tax," Marcinkiewicz told journalists in November. July 7
Hundreds of millions bet in Slovakia
The World Football Championships were also popular with Slovak betting shops. Gambling companies rejoiced that, in terms of revenues, they had never had such a successful sports event. "Income from bets were incomparably higher than the Winter Olympic Games in Turin, for example," the Tipos spokesman Filip Švaňa stated.
Representatives of other betting offices expressed similar sentiments. But not one of them was ready to publish exact figures on the sums bet during the championships. "It's a trade secret," was the response from all contacted firms. According to unofficial estimates, the amount of money bet could have risen to 800 million Crowns. July 11