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Viewing cable 06BRATISLAVA802, SMER PARTY CONGRESS PRODUCES NO SURPRISES: FICO IS

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Reference ID Created Released Classification Origin
06BRATISLAVA802 2006-10-02 15:13 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bratislava
VZCZCXRO6846
PP RUEHAST
DE RUEHSL #0802/01 2751513
ZNR UUUUU ZZH
P 021513Z OCT 06
FM AMEMBASSY BRATISLAVA
TO RUEHC/SECSTATE WASHDC PRIORITY 0337
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
UNCLAS SECTION 01 OF 02 BRATISLAVA 000802 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON PINR IZ LO
SUBJECT: SMER PARTY CONGRESS PRODUCES NO SURPRISES: FICO IS 
IN CHARGE 
 
REF: BRATISLAVA 553 
 
BRATISLAVA 00000802  001.2 OF 002 
 
 
1. (SBU) SUMMARY.  Smer ("Direction"), the leading party in 
Slovakia's governing coalition, unsurprisingly re-elected the 
Prime Minister, Robert Fico, as Chairman of the party during 
the annual party congress on September 30.  Two of Fico's 
closest advisors became Vice Chairmen, replacing two internal 
critics.  In his speech to the party members, Fico 
highlighted GOS accomplishments in the area of social 
benefits, promised the economy would stay on track to join 
the euro-zone in 2009, showed distrust of foreign influence 
in utility monopolies and politics, criticized the opposition 
including SDKU and SMK members, and said that the official 
announcement regarding the withdrawal of Slovak troops from 
Iraq would be made in two weeks.  Resounding more strongly 
than any specific statement, Fico demonstrated that he 
remains firmly in charge of Smer.  END SUMMARY. 
 
FICO STAYS, HIS CRITICS DO NOT 
------------------------------ 
 
2. (SBU) On September 30, the social democratic party Smer 
re-elected the country's Prime Minister Robert Fico as 
Chairman of the party.  Fico ran unopposed for the position 
at the annual party congress, held in Trencin.  Two of the 
six Vice Chairman slots changed hands.  Former Vice 
Chairpersons Monika Benova-Flasikova, who as an MEP publicly 
criticized Fico's inclusion of the xenophobic Slovak National 
Party (SNS) in the government, and Igor Sulaj, who criticized 
appointments within Smer and was disappointed not to receive 
a government position himself, had fallen out of favor with 
Fico. The party elected Culture Minister Marek Madaric and 
head of the government office (equivalent to Chief of Staff) 
Igor Federic as the new Vice Chairmen.  Along with Deputy 
Prime Minister Dusan Caplovic, who is also a party Vice 
Chairman, Madaric and Federic are believed to be Fico's most 
trusted advisors.  Interior Minister Robert Kalinak, Speaker 
of parliament Pavol Paska, and Member of European Parliament 
Vladimir Manka complete the list of Vice Chairmen. 
 
3. (SBU) Benova-Flasikova is considering running for mayor of 
Bratislava.  She would leave her MEP post if elected locally. 
 Smer has said the local city branch of the party will 
determine whether Smer backs Benova-Flasikova or Zuzana 
Martinakova, Chairwoman of the Free Forum party, a splinter 
group from the opposition Social Democratic and Christian 
Union (SDKU) party which did not make it into parliament 
during the national elections last June.  Smer should 
announce which candidate it will support no later than 
October 3. 
 
FICO'S LIKES: SOCIAL BENEFITS AND THE EURO IN 2009 
--------------------------------------------- ----- 
 
4. (SBU) Fico highlighted what he sees as the accomplishments 
of the government so far, policies to benefit the little guy: 
elimination of nominal fees for doctors' visits and 
prescriptions, an increase in the minimum wage, and being on 
track to deliver other social benefits such as a 
restructuring of income tax deductions to draw more revenue 
from the wealthy and an increase in benefits paid for the 
birth of a first child.  Despite the higher costs associated 
with delivering increased social benefits, Fico insisted that 
Slovakia could fulfill the Maastricht criteria for joining 
the euro-zone in 2009.  (COMMENT. We note that Fico's 
promises on changes to the tax structure have been markedly 
toned down from the campaign rhetoric. END COMMENT.) 
 
AND DISLIKES: MONOPOLIES, OPPOSITION, FOREIGN INFLUENCE 
--------------------------------------------- ---------- 
 
5. (SBU) Having negotiated with the gas utility SPP, whose 
minority German and French shareholders have management 
control, to lower their proposed annual consumer price hike 
from 16 percent to 4.26 percent, Fico said he was ready to go 
to battle with other foreign-owned utility monopolies, if 
necessary.  If unsatisfied with other monopoly negotiations, 
Fico would propose legislative changes to give the regulatory 
authority more control in the energy sector and resurrect the 
idea of a separate (i.e., higher) taxation rate for certain 
monopolies. 
 
6. (SBU) Unsurprisingly, Fico criticized numerous aspects of 
the opposition.  He complained of landmines the outgoing 
SDKU-led coalition left in government policy, such as a 
deficit in the social security system due to pension reform. 
He called on the Party of the Hungarian Coalition (SMK) 
Chairman Bela Bugar to explain his meetings in Budapest and 
any connection to Hungarian politicians and MEPs.  He told 
the gathering that Smer's membership in the Party of European 
Socialists (PES) was not yet resolved (reftel).  (NOTE. The 
 
BRATISLAVA 00000802  002.2 OF 002 
 
 
Vice President of PES traveled to Bratislava on October 2 to 
meet with Fico. END NOTE.) 
 
7. (SBU) Fico informed the Smer members that in two weeks' 
time the government will make the official announcement of 
the withdrawal of Slovak troops from Iraq.  (NOTE. Privately 
we have heard that although this will be the last rotation of 
the full contingent, there will be a demining unit follow-on 
that will concentrate on training.  END NOTE.) 
 
ALL HANDS ON DECK, NO ONE LEFT TO TEND THE MOTHERSHIP 
--------------------------------------------- -------- 
 
8. (SBU) Days before the party congress, a new Smer MP told 
Emboffs that the most unexpected challenge for Smer upon 
entering government was how to continue the management of the 
party structure.  While in opposition, life for the 
politicians and assistants had revolved around the party, 
especially during the campaign.  Now that they are in 
government, nobody is left to run the party structure.  Smer 
has recognized the problem, the MP added, and is actively 
recruiting workers to staff the Smer office. 
 
9. (SBU) COMMENT.  The Smer annual party congress brought no 
notable surprises.  Fico remains ever more firmly in charge, 
with those who have disagreed with him voted out of their 
leadership positions and closer allies moving up within the 
party structure.  END COMMENT. 
VALLEE