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Weekly Review

27.10.2006, 00:00

Brussels not willing to be Fico's referee
The European Commission is not willing to act as referee in the case of Ministry of Agriculture SR State Secretary Marián Záhumenský (Smer-SD). "We are not going to become involved in the political situation in Slovakia," Michael Mann, spokesperson for Euro-commissioner Marianne Fischer Boel informed HN.
She was the person Robert Fico turned to, wishing to hear whether Záhumenský's firm had the right to agricultural subsidies in the amount of 4,4 million crowns for land which he purchased last year. The opposition maintains that the State Secretary deliberately changed the rules for payment of subsidies. "If they ask us for a standpoint on a factual question regarding the subsidy system, we will provide a factual answer," Mann added. Fico's spokesperson Silvia Glendová confirmed that a letter from the Premier is on its way to Brussels.
The Premier will wait for the Commissioner's answer before deciding whether to leave Záhumenský in his post. In the meantime the Secretary is on unpaid leave from the Ministry - with no claim on a salary. Until the case is decided one way or another, his firm, Agrocontract Mikuláš, will not be receiving the controversial payout. Mann meanwhile was unable to say how long the Commissioner would need for her answer. He also did not wish to comment on how the entire affair is being received in Brussels, with the comment, "That would be speculation." October 24

We are not the worst in terms of deficit
Slovakia has the ninth highest public finances deficit related to gross domestic product in the European Union. After last week's review, it amounted to 3,13 percent of GDP in the last year, taking into account expenses for the second pillar of the retirement system.
We are thus drawing closer to the three percent limit necessary for the acceptance of the Euro. The criterion is set so as to protect the stability of the Euro, among other reasons.
Original estimates referred to a 3,8 percent deficit. Even when the Slovakia's debt is revised according to Eurostat data, it is still higher than the average throughout the entire Union (2,4 %), Despite undertaking retirement pension reforms, Slovakia still attained better numbers than Hungary, the Czech Republic, and five other Euro-zone countries.
Last year's handling of the country's public finances was significantly better than previous prognoses, which set the deficit at 3,8% had forecast. For this year the Ministry of Finances have estimated the deficit at a level of 3,35 percent of the GDP. "We are expecting a 2,2 percent GDP shortfall plus 1,1 influence from the pension reform," confirmed Vladimír Zlacký, director of the Institute for Financial Policy at the Finance Ministry. Paradoxically, better results could mean a trap for Slovakia - according to the rules of the Stability and Growth Pact, Slovakia should be reducing its public finances deficit against GDP by a half a percent every year. Therefore, this year the deficit should already be under three percent. October 23


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T-Mobile stays home
When Minister of Transport Ľubomír Vážny (Smer-SD) mentioned that he wished that Slovak Telekom would sell T-Mobile Slovensko, he was in all likelihood only stating his opinion. The sale of shares in the mobile operator, wholly owned by the semi-state Telekom, seems to be unreal.
Vážny's recommendation that Telekom sell its shares has no coverage. He did not agree with any of his party colleagues from Smer, nor with the 51-percent shareholder, the German Deutsche Telekom.
"I really have no idea what it is all about," Maroš Kondrót, a member of the Smer leadership, reacted to the Minister's initiative. Ján Kondáš from Telekom, in interpreting the standpoint of the German shareholder, said: "We have no interest in getting rid of any T-Mobile shares."
Minister Vážny based his opinion on the arrival of a third operator in Slovakia. He maintains that after the increase of competitive pressure, the state will not need an influence on the mobile market. October 22

Tatras prepare for British invasion
In the High Tatras the era of communicating "with hands and feet" is coming to an end. Local hoteliers have begun organizing English courses for their employees. Why? The Slovak mountains are expecting the same kind of invasion of British tourists as Bratislava is already familiar with.
The Slovak Association for Tourism last week introduced the Poprad and Spiš region to representatives of travel agencies and tour-operators from the British Isles. They were impressed with Slovakia, and according to the statement of the association, "the Tatras are an attractive destination for the British." Direct air links between Poprad and London have also been proposed.
Hotel owners are in no way underestimating preparations for the arrival of the British. "All the larger operations are organizing language courses for the employees," explained Peter Hajn, manager of the Grand Hotela Praha in Tatranská Lomnica. However, they are expecting a different sort of clientele than that which comes to the capital for a fun time. There is no such intensive night-life in the High Tatras, so they will be attracting mainly older guests with greater demands on services in the hotels. October 24

English translation by Kevin Slavin

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