Posted on 07/06/2006 1:13:45 PM PDT by Grzegorz 246
Robert Fico took office as Slovakia's first leftwing prime minister yesterday, against a backdrop of concern that he will destroy the country's hard-won diplomatic and economic reputation.
Diplomats and fellow European socialists are distraught that Mr Fico ignored foreign opinion and chose to ally himself with two parties that led Slovakia into international isolation in the mid- 1990s: the Nationalists and the HZDS of Vladimir Meciar, the country's authoritarian founder.
ADVERTISEMENT
Business and the financial markets are also worried that this populist coalition will enable Mr Fico to push through his pledges to roll back the free-market reforms of outgoing premier Mikulas Dzurinda. They fear this could stall foreign investment, interrupt Slovakia's robust economic growth and postpone entry into the eurozone - planned for 2009.
"This [government] would raise concerns about the future path of economic and fiscal policy, and would potentially bode ill for further efforts on structural reform or fiscal consolidation," ratings agency Standard & Poor's said last week.
Mr Fico may be a populist firebrand and a cynical dealmaker, but he is also a realist who understands the need to preserve much of Mr Dzurinda's legacy.
A political self-made man, he likes expensive suits and cars and plays football as an aggressive goal-hungry striker. The charismatic 41-year-old lawyer founded his own populist party - Smer - in 1999 and narrowly failed to unseat Mr Dzurinda at the 2002 election.
Since that disappointment, Mr Fico has tried to turn Smer into a social democratic party and has united the left against the stronger but fragmented right.
He has won over Mr Meciar's former voters by lambasting the social cost of Mr Dzurinda's welfare cuts as well as the alleged corruption of his government.
With European Union membership accomplished in 2004, Slovaks have accepted his call for a pause in the reforms.
In government, Mr Fico will struggle to impose his will on his unreliable new allies. However, Smer will dominate the new cabinet - taking 11 of the 16 seats - and neither Mr Meciar nor Jan Slota, leader of the Nationalists, will have a post. The new government will maintain its predecessor's European orientation but will be much less pro-US than Mr Dzurinda, who backed the re-election of President George W. Bush.
Mr Fico has little experience of or interest in foreign affairs, though he is keen to rebuild the country's economic links with Russia.
Therefore he has put foreign policy in the capable hands of Jan Kubis, a politically unaffiliated former secretary-general of the Organisation for Security and Co-operation in Europe.
"It's a great choice," says one Slovak diplomat. "He can explain abroad the steps of the new government. I'm just surprised he agreed to join."
Economic policy will also be pragmatic, because many Smer deputies and financial backers are business people. Moreover, Mr Fico has appointed in the key posts two former managers: Jan Pociatek at finance and Lubomir Jahnatek at the economy ministry.
Smer will honour its pledges to increase welfare spending and cancel health payments. It will also halt privatisation - though little is left to sell - and is considering abandoning Slovakia's 19 per cent flat income, corporate and value-added tax. However, tax changes may be limited to reinstating a low-rate, value-added-tax band.
This will not deter foreign investors, but may force a delay in adopting the euro. Slovakia was already struggling to meet the inflation and budget deficit criteria and Mr Fico's welfare promises and tax cuts could push both out of reach.
Slovakia ping
I am not concerned. If the people of Slovakia have made a wrong choice, they will be affected by the adverse consequences. Then, they will correct their wrongdoing by electing someone who is committed to the free market.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.