Slovak Spectator 1736

8/3/2019 Slovak Spectator 1736

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MPs approve bailout changes

FOLLOWING a deal between three of the governingparties and the opposition Smer party that has sentSlovakia heading for early elections in the spring,Slovakia on October 13 became the last country inthe eurozone to ratify changes to the European Fin-

ancial Stability Facility (EFSF) scheme. Unlike theprevious vote on the EFSF on October 11, which res-ulted in the fall of the government of IvetaRadiov, the re-run vote was virtually stress-freefor supporters of the bailout scheme. Smer leaderRobert Fico pledged his partys support for the pack-

age in return for a constitutional law triggeringearly electionsin Slovakiathat waspassed earlieronOctober 13. The EFSF changes were then duly ap-proved, with 114MPs ofthe 147presentvotingyes.

Under the rules now agreed by all 17 eurozonecountries, the volume of guarantees that can beofferedby theEFSFwillincreasefrom440billionto779 billion and Slovakias share will increase from4.37 billion to 7.72 billion. The EFSF will also be al-lowed to purchase government bonds on the sec-

ondarymarket, helpin the recapitalisation of finan-cial institutions, and issue precautionary credit tostates if there is a possibility that they will be shutoutof privatecreditmarkets.

The ruling Slovak Democratic and ChristianUnion (SDK), Christian Democratic Movement

(KDH) and Most-Hd parties plus the oppositionSmer party voted for the changes, while all MPsfrom the Freedomand Solidarity (SaS) party exceptMartin Fecko, who abstained voted against them.

Also voting against were the opposition Slovak Na-tional Party (SNS), three members of the Civic Con-servative Party (a faction within the Most-Hdcaucus), and independent deputy Igor Matovi.

Along with Fecko, two other independents ab-stainedfromthe vote.

Aday after thefirst, failedvote,thepresidents ofthe European Commission and the European Coun-cil, Jos Manuel Barroso and Herman Van Rompuy,called for a speedyresolution.

SeeYESpg9

SELECT FOREX RATES benchmark as ofOctober 13CANADA CAD 140CZECH REP CZK24.75RUSSIA RUB42.93GREAT BRITAIN GBP 0.88

HUNGARY HUF 29180JAPAN JPY 105.48POLAND PLN 4.32USA USD 137

NEWS

JudgeswithdrawsuitsDozensof judgeswhohadsought compensationfromthestate, allegingwagediscrimination,havewithdrawntheircases.JusticeMinistryhad criti-cisedthe suits asunjusti-fied.

pg 2

'Taxmix' proposedThe Finance Ministry wantstochangetheway localandregionalgovernments arefundedso that themoney

comesfrom a rangeofsources. Butmunicipalitiesworrythatthey will comeoff poorer.

pg 4

OPINION

NarcissusmesmerisedBewareof politiciansob-sessedwiththeirown im-age:as Slovakia isfindingout, they tend notto noticethewidereffectsthattheiractions have onsociety asawhole.

pg 5

BUSINESSFOCUSLabourCodedividesOveronemonthafterchanges tothe LabourCodecameinto effect,employersandunions are stillsendingstarklydifferentmessagesaboutits impacts.

pg 6

Includingthe joblessSomeunusualsolutionstoSlovakia'sserious problemwithlong-termunemploy-mentarebeingproposedtocut the scale andcosts ofjoblessness.

pg 7

CULTURE

KaplicksvisionThe largest-ever exhibi-tion oftheworksof vis-ionary Czecharchitect JanKaplickis onshowatBratislava'sDanubianaMeulensteenArtMu-seum.

pg10

Ashaken IvetaRadiovleavesthe parliamentarychamber onthe eveningof October11 afterMPsfailedto passtheeurozone-bailoutmechanism,leadingto thefall ofher coalitiongovernment. Photo:Sme -Vladimrimek

Government falls;

early elections setUNTIL this month, the plans of al-most all Slovakias politicians hadbeen predicated on the next generalelection not being held until 2014.But with the sudden fall of the gov-ernment on October 11 that electionhas suddenly been brought forwardto March 2012. And the implosion ofthe four-party coalition means thatunlike in 2010, when the centre-right parties were focused on deny-ing Robert Fico the keys to theprime ministers office, this timethey are likely to be fighting just ashardamong themselves.

The early elections are the pricethat three of the countrys four rul-ing coalition parties had to pay to

Fico, leader of the opposition Smerparty, in return for his support forenlargement of the eurozones tem-

porary bailout fund after the fourthcoalition party, Freedom and Solid-arity(SaS),refused give itsassent.

Because Radiov, following therejection by SaS of her final com-promise proposal, linked the crucial

vote on the European Financial Sta-bility Facility (EFSF) with a vote ofconfidence in her government, theno by SaS also meant the fall of hergovernment. Even a last-minuteappeal from Radiov shortly before

the vote on October11 failedto swaySaSdeputies.I am asking you to express con-

fidence in this government, todemonstrate that you agree it ishandling the public finances re-sponsibly and would not for a mo-ment mishandle the money earned

by hard-working taxpayers,Radiov said, as quoted by the Smedaily. The trustworthiness of Slov-akia is the most valuable thing that

wehaveto offer.Of the 124 deputies present in

parliament for the vote, only 55voted in favour of the changes, with60 mostly opposition Smer MPs abstaining and 9 deputies votingagainst. SaS 21deputiesdid nottakepart in the vote, in which the gov-ernment needed 76 MPs in favour to

passthe changes.

SeeOUTpg9

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CAREERS

After the fall

IT TOOK one year and four months forSlovakias four-party centre-right rulingcoalitionto fall apart.The decisive issueon

which the parties could not agree was theexpansion of the eurozone bailout mech-

anism, the European Financial StabilityFacility (EFSF).As The Slovak Spectator went to print

on October 13, President Ivan Gaparoviwas returning from an official visit to In-donesia in order to exercise his constitu-tional role and dismiss the government ofIveta Radiov after it failed to win theconfidence of parliament in a vote on theEFSF on October 11. Radiov had deliber-ately made the EFSF vote a confidence inher government.

Shortly after the vote, Radiov andthe leaders of three coalition parties madeit clear that they held the fourth party,Freedom and Solidarity (SaS), responsibleforthe fall ofthe governmentandcalled onits leader Richard Sulk to step down asspeaker of parliament and for all of thepartys ministers to resign their posts: De-

fence Minister ubomr Galko, EconomyMinister Juraj Mikov, Labour MinisterJozef Mihl and Culture Minister DanielKrajcer.

Sulk and his ministers, however,stated repeatedly that they saw no reasonto leave their posts voluntarily and saidthey would instead wait to be dismissed something which in Sulks case can only

be accomplished via a secret vote in par-liament.

In the aftermath of the fall of the gov-ernment the leaders of the other three co-alition parties were quick to reach agree-ment with Robert Fico of the oppositionSmer party to secure passage of the EFSF,

but at the price of early elections, whicharenow scheduledforMarch2012.

It is not yet clear what interim ar-rangements will apply after the current

government is dismissed.

Seestoriesonpage3

BYMICHAELATERENZANISpectatorstaff

BYBEATABALOGOVSpectatorstaff


SaSministers areaskedto resignbut they say

there is no reason to leave


2/12

MPFrantiek ebej leavesOKS

THEONLYMP fromtheCivicConservativeParty (OKS)

who votedto approvethechanges to the EuropeanFinancialStabilityFacility(EFSF)haslefthis party.ButMPFrantiekebejan-nouncedthat hewillremainasa memberof Most-Hdpartysparliamentarycaucus, the SITAnewswirereported. ThefourMPs fromOKSentered parliamentonMost-Hdsslate in the2010parliamentary election.

Imade thedecision be-causeof important differ-encesof opiniononseveralissues, for instance thebail-out mechanism,ebejstated,as quotedby SITA,addingthathe hasno per-

sonalissues with thethreeremainingMPs fromOKSandforeseesno problemco-operating withthemin thefuture.

PeterZajac, the chairman

ofOKS,saidhe respectsebejsdecisioneven though

hefeelsverysorryaboutitbecause theyhave beenworking together since1989.

Some membersof Most-Hdhave startedquestioningtheirfuture cooperation

withthe three MPsfromOKSwho didnotvotewiththegovernmenton theEFSFis-sue, sayingit couldnow bedifficult,the TASRnewswirereported. Thosethree MPs Zajac,Ondrej DostlandPeter Osusk didnotcom-ment onwhetherthey willremainin the Most-Hdcaucus or becomeindepend-entMPs.

Wewillseewhowillbeinthe newgovernment,Za-

jacstated,as quotedby TASR.We haveclearlydeclaredthat wewontsupportanygovernment featuring or be-ing supported by [Smerchairman]Robert Fico.

Trade union protest blocks borders

SIX BORDER crossings weretemporarilyblockedby tradeunionmembers on October11 ina protestagainsttheeconomic andsocial policiesof the Slovak government.

Theprotestswereheldattheborder crossingatPetralka-Bergto Austria, attheDrietomaandMakov

crossingswith theCzechRe-public, theahy andMilhoscrossings to Hungary andtheTatransk Javorina crossingtoPoland, theTASRnews-wirereported. The protestersstoppedcars, handed outleaflets andprovidedsmallgifts tothe driversto serve asanapology forany traveldelay.

EmilMachyna,the pres-identof theKOVOmetal-workers union, saidtheprotesthad support fromtradeunionistsfromSlovakiasneighboursandwasa wayof showingdis-content overthe inability ofSlovakiasgovernmentto en-

surea dignifiedsocial secur-ity system.ThewaythatFreedom

andSolidarity(SaS) leaderRichard Sulkbehavesinconnectionwith theEuropean FinancialStabilityFacility (EFSF)can onlybe

comparedto theMeiar era,whenSlovakiawas excludedfrombothitsNATOand EUintegrationefforts,Machyna stated, as quoted

by TASR.Theunionswere also

protesting against changesmade tothe LabourCodeandthechangesplannedfor the

incometaxand payroll levysystem,including theso-called super-grosswage anda proposal made bythe Na-tionalUnionof Employers(RZ)to reduce employerscontributionrates to socialinsuranceprogrammes.

Itis yetanothermeas-ure aimedagainstemployees,Machynasaidaboutthe RZproposal,adding thatemployersshouldbe able toraisetheiremployees salaries withoutaffecting theirsocial insur-ancebenefits.Machyna ad-dedthat basedon Slovakiaslabour productivity, thecountrysaverage wage of

780 shouldbe equalto thatofMalta,which is1,200,stating that itis high timethe governmentstopped fol-lowingthe dictates of capit-alismand startedworkingonimproving the situationforits citizens,TASR wrote.

Prosecutor charged with corruption

PROSECUTORDanaZlehovcovfrom Levicewillfacecriminalproceedingsafter shewas chargedwithacceptinga bribeand abuseofher official powers,theSme dailyreported.

Zlehovcov allegedly

asked for20,000to stop aninvestigationinto loan-sharking. The dailywrotethat shewasseen accepting5,000andthatshe hadalsoshownan investigatoryfile

preparedbyone ofher col-leagues toa personwho hadnorighttoseeit.

Ajudgeof theSpecialisedCriminal Courtin BanskBystrica ruledthat the pro-secutor wouldnot betakenintocustodybefore her trial.

If convicted,she couldfacefiveto 12yearsin prison,Smewrote.

Compiledby Spectatorstaff

frompressreports

Some judges rethinktheir wage-claim suits

DOZENS of anti-discriminationlawsuits that Slovak judgeshave filed because salaries

were lower than those ofjudges serving at the now-de-funct Special Court have beendropped. The reasons for thejudgeschangesof heartabouttheir lawsuits remain un-clear,but theirclaims ofwagediscrimination have been cri-ticised for undermining pub-lictrust inthe justicesystem.

About 50 wage discrimin-

ation lawsuits had been with-drawn as of October 10, ac-cording to Justice Ministrystatistics reported by the Smedaily. However, it is not clearhow many judges had actu-ally dropped their cases sincemany of the lawsuits weremass complaints involvingseveral plaintiffs.

Hundreds of judges havefiled wage discriminationlawsuits since 2007, most ofthem following a Constitu-tional Court ruling in May2009 which found that theSpecial Court, set up by a pre-

vious government to fighthigh-level corruption and or-ganised crime, had not been

established in accordancewith the countrys constitu-tion. Part of the ruling was

based on the grounds that theposition of judges in differentcourts was unequal, includ-ing in terms of pay. SpecialCourt judges typically re-ceived considerably higherpaythan regularjudges.

The Justice Ministry un-der Lucia itansk, the min-ister since 2010, has been col-lating information aboutthese wage-discriminationlawsuits. According to min-istry spokesperson PeterBubla, at least 702 judges filedsuch a lawsuit, according tothe latest information, withtotal damages requestedamounting to more than 70million. The ministry is a de-fendant in about 200 of thelawsuits; the rest have been

brought against otherinstitu-tions such as the Slovak par-liament or individual courtssuchas theSupremeCourt.

Newpresidentswithdraw

Many of the newly-ap-pointed presidents and vice-presidents of district and re-gional courts areamong those

who changed their minds and withdrew their discrimina-tion lawsuits, the Sme dailynoted.

While itansk deniedthat she had made it a condi-tion that judges drop theirlawsuits in order to be ap-pointed, she admitted thatshe had spoken to the would-

be court presidents abouttheiractions.Specifically, shesaid she explained to themthat if they had filed a wage-discrimination lawsuit theycould, as court presidents, befaced with a conflict of in-terest.

The head of the TrnavaDistrict Court, Judge Dagmar

Valock, admitted to the Smedaily that the opinion of theministry had played a role inher decision to withdraw her

lawsuit. In the end she with-drew it after she was appoin-tedpresidentof thecourt.

Court feesdisqualifysome

Another reason why thenumber of discriminationlawsuits has thinned recentlymay be that the Justice Min-

istry under itansk startedinsisting that judges paycourt fees when filing dis-crimination lawsuits. Asmany as 58 cases have beendismissed due to the fact thatthe judges who filed the law-suits had not paid the relev-ant court fees. Four of thecases are not dismissed com-pletely; in the remaining 54cases the judges still have therightto appeal against the de-cision, Smereported.

Some of the judges claimthat it is unconstitutional todemand that they pay courtfees, saying that in lawsuitsdirected against the state,

where the Slovak Republic is

the defendant in the case, thestate is not entitled to requirethat courtfeesbe paid.

If that were true, judges who failed in their lawsuits would not suffer any directfinancial loss if they were tolosetheir cases. Conversely, ifthey are required to pay courtfees, they risk losing moneyas the fees are not refundableintheeventthatacaseislost.

Court fees amount to 66plus 3 percent of the sum thatis sought in damages. For ajudge who claimed damagesof 186,000 that would meantheir fees would amount to5,600, Smewrote.

Under the previous gov-

ernment the Justice Ministrydid not insist on judges pay-ing court fees. In fact, justiceminister Viera Petrkov hadlodged a wage-discrimina-tion lawsuit on her own be-half while working previ-ously as a judge. It remainedpending during her time asminister.

BYMICHAELA

TERENZANI

Spectatorstaff

Alleged leaker failed lie detector testPOLICEhavechargedone oftheirown of-ficers with leaking to the media two listsof people alleged to have connections toorganised crime. The lists, containingnames, photographs and detailed per-

sonal information, quickly becameknownas themafia listsandpolicehave been busy trying to identify the leakersince they were published. In mid-Octo-

ber anofficer workingfora special organ-ised crimeunitfailedto pass a liedetectortest and was later accused of stealing thedocuments.

The prosecution of the police officeraccused of stealing and leaking the so-calledmafia listsis based onthe resultsofthe polygraph test. During a subsequentinterview, the accused officer admittedleaking the documents for the mostpart, according to Interior MinisterDaniel Lipic. She is now charged withabuseofpowerbyapublicofficial.

The so-called mafia lists have beenmaking news in Slovakia for the pastcoupleofweeks.

Two separate lists of people allegedlyconnected to various mafia groups havebeen published. The first one was repor-ted by the private TV channel Markza. Asubsequent list,reported bythe Nov asdaily in early October 2011, was 10 pages

longandcontainedmorethan300names,with pictures and detailed personal dataincluding birth-registry numbers, car li-cence-plate numbers and gun-licencenumbers.

Investigators believe the policewo-man, from the polices special depart-ment against organised crime (BOK),copiedthe data onto a USBstickand laterontothelaptopofanotherperson.Thepo-lice are still investigating her motivesandother circumstances of thecase.

It was an individual failure by anofficer, Minister Lipic told a press con-ference.

The police insist that the leaked in-formation is only a part of the databases

which BOK officers use in their opera-tions and in documenting organisedcrimenetworksintheBratislavaregion.

Theirvalueis minimal,Police Corpspresident Jaroslav Spiiak said,as quoted

by the SITA newswire. This leak of in-formation did not cause any disturbanceto theactivities of theOfficefor theFight

againstOrganised Crime.However, this is not the first timethat so-called mafia lists have appearedin public. The first time documents ofthis kind were published by the media

was in 2005. At that time, the author was

Spiiak himself, then serving as deputypresidentof thePoliceCorps,ashe admit-ted in an interview with the Sme daily inJanuary2011.

He justified his decision to publish

the2005 listby sayingjournalistsdid notdare write anything about anyone, [or] atmost after his death they called him amobster.

This time around, however, Spiiakdenied any connection with the pub-lished mafia lists and said the police hadnot been ordered to create any such lists.However, headmittedthatin March 2010a list of so-called groups of interest had

been compiled by the police under hispredecessor as Police Corps president,JnPacka,Smereported.

Packahassaidheisnotawarethatthepolice would have drafted such lists dur-ing his term in office but did confirm theexistence of lists of persons in whom thepolice mightbe interested,SITA reported.

After the current lists were pub-lished, however, Lipic stated that the

police in every country make lists ofcriminals and organised groups. This in-formation, however, is classified, SITAreported.

ByMichaelaTerenzaniwithpressreports

LuciaItansk Photo:Sme -T. Benedikovi

2 NEWSOctober 17 23, 2011


3/12

Experts: SaS is isolated

NUMEROUS questions andconcerns about the fall ofSlovakias government on theevening of October 11 contin-ue to linger in the autumn air,even after the eurozone bail-out mechanism was approvedby the Slovak parliament onOctober 13 with votes fromthe Smer party being providedin exchange for an agreement

that an early general electionwill beheldnextMarch.Uncertainty is palpable

but media and political ana-lysts have been offering theiropinions on the followingkinds of questions: what doesthe future hold for RichardSulks Freedom and Solidarity(SaS) party, blamed by boththe opposition and its formercoalition partners for bring-ing down Iveta Radiovsgovernment? Could any partyeven consider SaS as a coali-tion partner in the future?Does the fall of the govern-ment necessarily mean a re-turn to power by Robert Ficoand his Smer party? And what

will Radiovs place be in theemerging political environ-ment?

SaSappearsisolated

Within hours of the par-liamentary vote on theEuropean Financial StabilityFacility (EFSF), and in thedays that followed, the threecoalition parties that suppor-ted the plan agreed upon byEuropean leaders in July the Slovak Democratic andChristian Union (SDK), theChrist ia n Democrat icMovement (KDH) and Most-Hd made it clear that fur-ther official dealings with

SaS will be limited, leavingthe future of Sulk and hispartysomewhat uncertain.

Politically, this party ispractically in isolation,political analyst MarekRybof the political sciences de-partment of Comenius Uni-versity in Bratislava told TheSlovak Spectator, adding thathe does not believe the partycan easily find any other al-lies because it has lost its co-alition partners due to itsown actions but asserts thatit has nothing in commonwith the two parties cur-

rentlyin opposition.Political analyst Grigorij

Mesenikov of the Institute

for Public Affairs (IVO) agreedthat SaS has little potential asa coalition partner with otherpoliticalparties.

The issue of the bailoutand issues that are linked

with the situation in theeurozone will certainly be im-portant for the next govern-ment and entering a coalition

with a partner who has aclearly defined attitude on theissue that is unacceptable toits partners might be ratherproblematic, Mesenikovtold The Slovak Spectator. Ido not think SaS will haveopen coalition cooperation

with the three other centre-

right parties. And SaS is anarch-enemyof Smer.Ryb also does not think

it is likely that SaS can attractmore voter support in the up-coming elections, arguingthat theonlyissuethe party isleft with is that they are theones who have been againstthe loan and Ryb doubtsthat a political campaign can

bebuilt onthisissuealone.The analyst added that

even those voters who mayhave appreciated the Euro-sceptic talk coming from SaS

will not vote for the partysimply for that reason andpolls showing a majority ofSlovaks opposed to the euro-

zone support mechanisms arenot a good gauge of votersperceptionsof theissue.

The fact is that peoplemostly did not know whatthey were talking about sincethe discourse was narroweddown to the claim that Slov-akia was going to give moneyto the Greeks, Ryb stated,emphasising his belief thatthe topic does not have thepotential to help any Slovakpolitical party to score points

withthe electorate.Jakub Groszkowski, an

analyst with the centralEuropean department of theCentre for Eastern Studies in

Warsaw, noted that the

mechanisms agreed upon byEuropean leaders to protectthe euro are not easy for or-dinarypeopleto understand.

Richard Sulk made aneffort to clarify that topic

in Slovakia as well as inGermany, but it seems hisapproach towards theEFSF remained unclear,Groszkowski said in an in-terview with The SlovakSpectator.

Whatnext forRadiov?

SaS is not alone in havingits political future reduced toa big question mark. The

prime minister of the outgo-ing gov ernment, I vetaRadiov,is also unlikely tobeamong those who will returnto the most important posi-tions in the government afterthe March elections. Someanalysts even believe her fu-ture in her own politicalparty,the SDK,is indoubt.

For some time before thefailed EFSF vote the mediaspeculated about whetherRadiov might seek to estab-lish her own political party,particularly after she did notrule out such a possibility inan interview with the Trendeconomic weekly.

But Ryb said he cannot

imagine Radiov establish-ing another political party atthe moment and Mesenikovrefused to speculate about

what might come next forRadiov, saying she had nottransmitted any signals that

would provide a clear ideaabout where she sees her ownfuture or whether she mightpursue another presidential

bid inthe future.Hercampaignfor thepres-

idency, against incumbentIvan Gaparovi in 2009,garnered Radiov about amillion votes and the possibil-ity of another bid has beendiscussed by both the mediaandpoliticalanalysts.

Radiov has a very goodchance of becoming the nextpresident if she wants to con-tinue in politics, said TimHaughton,a politicalscientistand visiting fellow at Johns

Hopkins Universitys Schoolof Advanced InternationalStudies in theUnited States.

Radiovs position with-in the SDK has been rathershaky throughout her term asprime minister, according toSlovak political analysts andthe media.

Ryb noted that the re-ported tension betweenMikul Dzurinda, SDKschairman, and Radiov has

not been resolved becauseneither of them expectedSlovakia would be holdingparliamentary elections be-fore 2014.

This suited bothindividuals, Ryb stated.Radiov focused on man-aging the government andDzurinda on controlling theparty and they did not have toresolvetheissue.Butthiscon-flict will re-emerge very soon

withearly electionscoming.

Smer thewinner fornow

The parties of the defunctcentre-right coalition aresaddled with several difficult

dilemmas to resolve beforethe election campaign startsnext year, while Smer and itsleader Robert Fico emergedfrom the political crisis as theunquestionable winners asonly with Smers votes couldthe EFSF legislation be passedin a repeat parliamentary

vote, putting Smer in thedrivers seat to dictate howthatwould be accomplished.

The parliamentary elec-tions now scheduled forMarch10 next year area clearopportunity for Smer to re-turn to power given that theparty has been polling wellover 40 percent since the lastelections in June 2010. Nev-

ertheless, political analystsare reluctant to predict thatFico will resume the post ofprime minister.

SeeNEXTpg5

BYMICHAELA

TERENZANI

Spectatorstaff

RobertFico emergedfromthe EFSFvoteas thepoliticalvictor - atleast fornow. Photo:SITA

Radiov couldbecome president

IVETARadiovhas servedone of Slovakia'sshortesttermsas primeminister,

withonlya year andfourmonthsin theposition. Afterparliamentfailed her cabinetin thecrucialeuro-bailout

voteon October11,her futureaswellas thefuture oftheparty that opposedthebail-outlegislation, Freedom andSolidarity(SaS), are the

biggest questionsin Slovakpolitics.The SlovakSpectatorsoughtthe opinion of polit-icalscientistTim Haughton,currentlya visiting fellow atJohnsHopkinsUniversitys

School of Advanced Interna-tionalStudiesin theUS.Hegave hisviewson possibledevelopmentson Slovakiaspoliticalscene.

TheSlovakSpectator (TSS):Nowthatthevote isoverandIveta Radiovsgov-ernmenthasfallen,do youthinkit wasa good idea forRadiovto link thetwovotes thebailoutandtheconfidence vote inpar-liament?

TimHaughton(TH):Everyone canbe wiserwithhindsight,but the bottomline isthat thegovernmentneededto approvethebail-

outandRadiovhadto useallthetoolsin hertoolboxtotryto gether governmenttosupportthe measure. Beyondmakinga massive conces-sionto [SaSleader Richard]Sulkor [Smerleader Robert]Fico,what genuine alternat-ivedidshe have?

TSS:Howdoyouseethe fu-

tureof IvetaRadiovon theSlovakpoliticalscenenow?

TH:Asshe mentionedonthefirstanniversaryof her

governmentshehas hadadifficulttimeas prime min-ister.Runninga coalitiongovernmentin Slovakia isnoteasyat thebestof times,

butit is particularlydifficultwhena prime ministeris noteven theleaderof herownparty.Radiovhasa verygood chanceof becomingthenext presidentif shewantsto continuein politics.

TSS: Doyouthinkthecon-ductof SaSwill strengthenitspopularity amongvoters,orarepeople likelyto turnawayfromthemnow?

TH:Byopposingthe bail-outSulk hasno doubt

garnereda modicum ofsup-portfrom someeuroscepticcircles. Sulks mainproblemlies inthe fact that thecoreofhis partysvoters in2010(excludingthose elected un-dertheOrdinaryPeoplela-

bel)supportedSaS liberalagenda. Sulkhasntde-livered the liberal socialagendahe promised.As Kev-inDeegan-Krause andI havearguedin a numberof aca-demicarticles,new partiesin Slovakia whichgo straightintogovernmentafter first

beingelectedfind it difficulttohangon totheirsupport.SaSssupport isnot asdeeplyrootedas thesupportfor,

say,KDH [theChristianDemocraticMovement].Iwouldexpecta largesliceofthosewho votedSaS in2010notto support thepartyagainin any earlyelections;the realquestionis whetherthis drop insupportwillbeoutweighedby moreeuro-sceptic voterswho admiredSulks stanceon thebailout.

3October 17 23, 2011NEWS

The legacy of theoutgoing government

THEFALLof theRadiovgovernment meansthat vir-

tuallyallthereformsthatithadproposedbutwhichhadnotbeenadoptedby parlia-ment arelikely tostall.

While theruling coalitionwillnot realiseallits plans,itdidpass severalkey legislat-ive measures during its shortterm.

The requirementto pub-lish allcontractsinvolvingexpenditureof public fundsonthe internet isa flagshipmeasure secured by theRadiov administration.Thismeasure, according to asurveyof politicalcomment-atorsby theSmedailyat theendof 2010,has helpedto in-creasethe transparencyof

the stateadministration.Moreover,it helpedto revealseveraldubiouscontracts,includingthosein theso-called Hayekcase thatlaterresulted in theresignationof

two deputy ministers.Underthe law, allinsti-

tutions whichfall undertheFreedomof Information Actministries,state offices andtheirbudgetaryorganisa-tions,publicorganisations,towncouncils,villagecoun-cilsand regionalgovern-ments must publish theircontractsonline.

Changes in the judicialsystemwere alsoprioritiesfor the Radiovgovern-ment.One ofthe firstchangeswasto establishanewsystem forthe selectionof judgesby commissionscomposed of representativesofcourts,the Justice Min-istryand parliament.

Similar changes werere-

cently passedfor prosecutorsaswellbut have beensus-pendedby a ConstitutionalCourtruling.

SeeFALLpg9

BYMICHAELA

TERENZANI

Spectator staff

Political analystsare uncertain

aboutwhat might

happennext


4/12

Layoffs at TV component plant

MOREthan 1,400 peoplewerelaid offfroma factory inVoderady,nearTrnava,ownedbyHansol, a Korean producerof componentsfor televisionsets,the HospodrskeNovinydaily reported.

Ourcompany termin-atedproductionof backlightsandLCM panelson August31because ofa long-termad-versesituationin worldmarkets, saidJn Mikul,thefirmsPR specialist,asquotedby thedaily.

Miroslava Navrtilov

fromtheTrnavalabourin-spectorate officetold thedailythather officehad not

received anycomplaintsaboutthe layoffsandthe la-

bouroffice located in Trnavareportedthatit didnotknowaboutany mass layoffs andregistered only103 people

whohad previouslyworkedfor the company.

The facility openedin2007to produce componentsforthe nearbySamsungfact-ory.Mikul announcedthatthecompanyplansto stay inSlovakia butwillfocus ondif-ferentproducts,according toHospodrske Noviny.


frompressreports

Employment and salaries increase

WHILEthe unemploymentrate in Slovakia remains con-

siderablyhigher thanthe av-erageacross Europe,the Stat-isticsOffice recently releaseddataindicatingthat em-ployment in certaineconom-ic sectors is increasing.

Thenumber ofemploy-eesin theIT andcommunic-ationssector was13 percenthigherin August2011com-paredwith August 2010,whileemployment in mis-cellaneousmarket servicesgrewby 6.9percentand in-dustrial employmentrose by3.7 percentyear-on-year.

But employmentin theconstructionsectorfell by 3.8percent,the numberof em-ployees working inaccom-

modation servicesdroppedby0.3percentand totalemploy-

mentin thewholesalesectorwasdown by 0.1percent.The averagenominal

salaryin August2011was6.6percenthigherthan August2010,the TASRnewswire

wrote.Nominalsalariesofemployees in theinforma-tionand communicationssectorincreasedby 22.1per-cent fromAugust2010to Au-gust2011, theStatisticsOf-ficereported. Nominalsalar-iesalsorosein theconstruc-tion sectorby 6.8percent,inindustryby 6.6percent,intransport andwarehousing

by3.9percent andin miscel-laneous marketservicesby3.2percent.

Fate of budget unclear

THOUGH it was not the immediate stateof the national finances that broughtdown the government of Prime MinisterIveta Radiov, its fall means the nextstate budget covering 2012 to 2014 isnowin some doubt.

A day after the junior coalitionmember Freedom and Solidarity refusedto support changes to the eurozone

bailout mechanism, thereby precipitat-ing the fall of the government, theRadiov cabinet still managed to agreeon a modified version of the draft

budget. It presents a deficit of 3.3 bil-lion, with income at 15.4 billion andexpenditureat 18.7billion.

The overall public finance deficit isestimated to decrease from 4.9 percentof GDP in 2011 to 3.8 percent in 2012,

with the 3-percent threshold required

by European budgetary rules due to beachieved in 2013, the TASR newswirereported.

If parliament fails to approve thestate budget by January 1, 2012,Slovakia

will have to operate on a provisionalbudget, which in effect means follow-ing the contours of the 2011 budget. Thelawstipulates thatthe cabinet is obligedto submit a draft state budget to parlia-mentby October15.

Ruling coalition members said they would strive to reach accord over thestate budget despitethe currentpoliticalturbulence. Slovak Democratic andChristian Union (SDK) chair MikulDzurindasaid he expectedSaS tovote forthedraft,the SITAnewswire reported.

Agreement on the state budget wasreached with SaS on October 12, accord-

ingto Finance Minister IvanMiklo.I would consider any conditions[by SaS] for fulfilling this agreement to

be inappropriate, he said, as quoted byTASR.However, the draft budget partly

assumes revenue from a reform of taxand levy collection that had been mak-ingits way through parliament.

Labour Minister Jozef Mihl, anominee of SaS, expressed optimismon October 12 about the prospect of get-ting the payroll-levy reform approvedbyMPs.

Asfar as thetax-levyoverhaul goes,Im proceeding as if nothing hashappened, Mihl said, as quoted byTASR, adding that talks with represent-atives of the self-employed and artists,

who had criticised the reform for whatthey described as its negative impact oncertain groups of self-employed people,hadbeen goingwell.

But the next day, October 13, Mihlwas forced to concede that the reform would be dropped after all, citing in-

formation he had received fromRadiov. Mihl said he regretted thedecision to abandon the reform, andnoted that he had spent more then a

year working on it.Mihls own position as minister is

now uncertain, as Prime MinisterRadiov and the ruling coalition lead-ers have called for the resignation of allSaS-nominated ministers.

Anyfailureto pushthrough changesto the financing of local governments the so-called tax mix or changes totaxes on banks might also take a toll onMiklo budget, whichprioritises spend-ingon education,transport andhealth.

Opposition leader Robert Fico hasalready said that his Smer party will notsupport a budget drafted by the centre-rightparties.

During the approval of the statebudget we will behave as a typical left-wingparty,Fico saidon October 12.


Thefutureof ofIvanMiklo'sdraft statebudgetfor 2012is nowuncertain. Photo:Sme

Changes proposed in local government revenue sources

THE FINANCE Ministry has prescribed a finan-cial vaccination for local and regional govern-ment against what it calls the Greek path,with Finance Minister Ivan Miklo arguingthat in challenging economic times all recipi-ents of public finances, local governments in-cluded, should start tightening their belts. Ac-

cording to the ministry, this should involve achange in the tax mix the range of sourcesfrom which local government derives its fund-ing but the idea has failed to impress muni-cipalities and has provoked criticism from themainoppositionparty.

The Finance Ministry proposes that localgovernments no longer be financed entirelyfrom personal income tax revenues, but insteadfrom a mix of taxes: personal income tax, cor-porate income tax, value added tax and excisetaxes. However, the recent developments res-ulting in the fall of the government on October11 mean the changes are now unlikely to bepassed by parliament before an early electionduein March.

The Association of Towns and Villages(ZMOS), which represents 96 percent of muni-cipalities, wants to preserve the current sys-tem of financing, which is linked solely to per-

sonal income tax. ZMOS argues that revenuesfrom this tax are justly distributed amongtowns,villagesand regional governments.

The Union of Towns of Slovakia (MS), an-other body that represents municipal govern-ments, says that while it understands the

macro-economic problems of the state anddoes notdenythe needfor localgovernment toparticipate in their solution, it also believesthat the proposed change in financing willhave a negative impact on local governments,Marin Minarovi, secretary general of theMS,told The Slovak Spectator.

Miklo has defended his plan, suggestingthat the scheme is much better for the muni-cipalities themselves since they are likely toreceive3 percentmorein 2012 than this year.

The basic point of the proposal is that

while currently the local governments havebeen getting 93.8 percent of the income tax ofindividuals, as of next year they would be get-ting 12.97 percent of all tax revenues, the so-called tax mix, Miklo said, as quoted by theSITAnewswire. The methodof calculating taxrevenues changes, yet nothing really changesin the principleof fiscaldecentralisation.

According to Miklo, even after the changetowns and villages will see, on the 18th day ofthemonth, a sumsentto their accountswhichthey will then be able to spend based on thesame principles that now apply. The financeminister said he understands that the municip-alities want more money, but that in the lightof the immense insecurity linked to economicdevelopments in the world economy and at atime of threatening recession Miklo says heconsiders three-percent year-on-year growth asappropriate, SITAreported.

In response to municipalities misgivings,Miklo noted that they also protested in 2004 when then-prime minister Mikul Dzurindawas trying to push through the original fiscaldecentralisation plan.

Some regional governments, however, say

that the changes could threaten their very ex-istence. The presidents of Bansk Bystrica,Koice, ilina and Nitra Regions VladimrMaka, Zdenko Trebua, Juraj Blanr and MilanBelica say that in 2012, regional governmentswould see 62 million less than they might ex-pectbased on thecurrent model, SITAreported.

They argue that the move might result inincreased prices at nursing homes, utilitiesand social services, unrepaired local roads,cancelledlocal buses,higher taxes oncars,andproblems co-financing projects covered from

European funds.However, the MS says that if a set of ac-companying laws is passed, the situation could

be mademore acceptablefor localgovernments.We negotiated to ensure that an addition-

al law be adopted to guarantee the necessaryminimum funds for the performance of theoriginal powers of local administrations,Minarovi toldThe Slovak Spectator.

Minarovi stressed that the goal is that inthe event of any kind of crisis local govern-mentsare still able tofulfiltheir mission.

Personal income taxes present for us a cer-tain high degree of independence because theyare set by law when the state budget is pro-posed, i.e. the criteria do not change,Minarovi said, adding that this system is quiteadvantageous in timesof positivedevelopment.

He said that this was part of the officialreasoning for why the state now prefers the tax

mix, made up of four different types of taxes, aswell as solidarity, since at the same time as theincome of the state drops, local government would also experience a fall in income.Minarovi added that some mayors and headsof localgovernment evenaccept thisargument.

In the event that the new model of fiscaldecentralisation isapplied,we demanda cutinspending causedby legislationand atthe sametime an increase in the incomes of local ad-ministrations, without an impact on the state

budget,Minarovisaid.The leader of the opposition Smer party,

Robert Fico, criticised the government of IvetaRadiov for what he called cutting financesfor localgovernments.

An extraordinarily critical situation isemerging within the municipal and regional

governments, Fico said, as quoted by SITA.Mayors are turning to us and demanding thatwe prevent the adoption of measures that thegovernment is preparing which would bank-ruptlocal governments.

Fico has restated that his party will notsupport the tax mix and argues that local gov-ernments would lose approximately 250 mil-lion in 2012, allowing the state government tousethemoneyfor itsown purposes.

Smer instead proposes higher taxes, at 25percent, for people whose annual income ex-ceeds 33,000, along with heavier taxes on

banks. Thecurrent flat taxrate on incomeis 19percent. Corporations with profits exceeding1 million might also face higher taxes, ac-cording to Ficos proposals to direct funds tomunicipalities.

The total revenues of local governments inthe first six months of 2011 reached 1.843 bil-

lion, representing a 3.77 percent increase year-on-year. Total spending by local governmentsstood at 1.599 billion, up 1.4 percent year-on-

year, based on an analysis by the Slovak CreditBureau, which operates two Slovak loan regis-tries,SITA reported.


4 BUSINESS / NEWSOctober 17 23, 2011


5/12

Kokan

PRIME Min ister I vetaRadiovs spokesman RadoBao said his brief commentthat "decisions about Slovakiashouldnt be made by cocaine"that he posted on Facebookright after parliamen tbrought down the govern-

ment was meant as a "scorch-ing metaphor about the stateof local politics. The choice ofmetaphor is rather unusual

but okay, lets examinewhether the recent actions ofSaS resemble those of a persononcocainein anyway.

What does Wikipedia sayare the main effects of co-caine?

Increased alertness andfeelings of competence. SaS'Richard Sulk certainly doeslike to repeat that he seestruths hidden to others.When asked why the rest ofEurope and his former coali-tion partners support theeuro bailout fund which heknowsis aroad tosocialismand the beginning of eco-nomic serfdom, he impliedthe others are manipulated,or just thoughtlessly goingalong with the crowd. On theother hand, the actual col-lapse of the coalition and theswift agreement on earlyelections does seem to havecaught SaSby surprise.

Feelings of well-beingand euphoria. Right afterbringing down the govern-ment, SaShada partyin theirLiberal House. Just a fewmoments earlier they hadglobal investors and politicalleaders watching and the

countrys prime minister begging them for mercyand they showed them all!

What better time to have alittle fiesta.

Increased sexuality. Noidea just how liberal theirhouse is but sticking to themetaphorical nature of ouranalysis, the SaS did pick asexy topicto build theirrepu-tation on or at least the sex-iest currently available. Theparty has tried to lure voters

by several agendas oppos-ing mandatory concessionfees for public broadcasting,decreasing the size of par-liament, setting a limit onthe price of government lim-ousines, decriminalizing

weed, legalising gay partner-shipsand soon.

But nothing came of anyof them. Seeing their supportdecline, they needed to findsomething big and catchy to

boost their appeal. Savingtaxpayer moneybefore it wasstuffed down the throats offat Greeks was the best theycould comeup with.

Anxiety, paranoia, andrestlessness. SaS memberskeep repeating that Radiovis the best imaginable head ofgovernment. So why did they

vote against her? Their an-swer: because she tied the

votes together. Why did she doit? Some dark forces appar-ently forced her to do so. SaSMP Martin Poliaik is knownas Shaman, so voodoo may

be involved. The often demon-ised SDK boss MikulDzurinda is probably also as-signed some role. But just

what those demons did toRadiov remains unclear, asdoes when they will let go ofher soul which still seemsobsessed by the crazed notionthat it really was best to ap-provethe eurozone bailout.

Occasional cocaine usedoes nottypicallylead tosocialproblems. Causing the fall ofthe government and earlyelections did not make SaSmany friends. But it seems tohave united the party and ithas given Sulk his fifteenminutes of fame abroad. Thereal problem is that what justhappened has the potential tocause enormous social prob-lems in Slovakia.Muchneededreforms remain unfinished,the country has lost a govern-ment in the middle of hugeeconomic turmoil, the doorsare open for the return ofRobert Fico, whose adminis-tration was known for corrup-tion, incompetence and intol-erance. The EFSF has passed.Fico ison hiswayback.

After the vote Radiovsaid SaS achieved nothing byits actions. As Eric Claptonslyrics to Cocaine say: Shedont lie. She dont lie. Shedontlie.

Mesmerised by theirown reflections

POLITICS can easily serve asa pool for the would-be Nar-cissus to marvel at his ownimage. Along with the op-

portunity to exercise realpower, this is what drawshim into politics: the powerofhis imageand thelovehethinks it will arouse. But

what makes politics differ-ent from Greek mythology isthe fact that the poses andgestures of the political Nar-cissus havea realimpact.

There is a type of politi-cian who will never acceptthat politics is not abouthow cool and brave they ap-pear in the roles they playfor their loyal supporters,

but about the consequencestheir decisions bring for allof society. But when theypine away and sink into

politicaloblivionit is societythat has to live with theconsequences they leave

behind.Politics should not be

about politicians euphoriaover what they regard as

brave decisions but aboutthe cold reality of their con-sequences. Politics shouldnot be just an adrenalin-sport with a minor headachethe morning after, followed

by the possibility of anotherride12 hours later.

Slovakia saw its centre-right pro-reform govern-ment collapse on October 11,after one of its members,Freedom and Solidarity

(SaS), refused to vote for theextension of the eurozonebailout mechanism.

Since Prime Minister Iv-eta Radiov, following sev-eral failed attempts to reacha compromise with SaS,made the issue a vote of con-fidence in her cabinet, SaSfailure to support her led tothefall of thegovernment.

Slovakia will certainlyvote for the bailout, but thistime with the help of Smer

bossRobert Fico.Whatis theprice for Ficos helpinghand? The bill has already

been delivered: early elec-tionsin March2012.

Perhaps those who con-tributed to the fall of the

current government shouldask the judges who were brave enough to call for

moretransparency and wereh op in g f or r ef or ms t o

breathe fresh air intocourtrooms how much theyappreciate this liberal face-saving exercise.

Robert Fico is not knownforhis passionfor judicialre-form and now the doors are

wide open for him to returnto government: in recentopinion surveys his Smerparty has consistently polledaround 40 percent.

They should perhapsalso ask the businesses thathave invested in Slovakia

whether they are willing tocontribute to the bill forthis hefty publicity stunt,given the prospect of yetanother revision to the La-

bour Code or a full stop toreforms designed to bringmore transparency to pub-lic procurement.

There is always more atstake than Facebook entriesinflated by self-importanceand responses from virtual

groups proclaiming Goodjob, boys! Not all of Slovakiais on Facebook and peoplelive their real lives outsidethe simulacra of internetcommunication. The de-cisions the next governmentmakes will affect them morethan any cool political poses

by now-marginalised politic-al parties.

It is likely that even Fico,that grand master of popu-lism, was taken aback by thesudden opportunity he wasgiven to return to power his

bombastic statements pre-dicting that the right-wingcoalition would never be ma-ture enough to rule the coun-

try notwithstanding. Hissponsors are now startingtheir engines and lining upfor stateorders.

Where does the hope liein all this? Perhaps withthose who do not turn their

backon thecoalition parties, but more carefully considerwho is worthy of their trust.This is not any easy under-taking. Part of the paradox isthat Slovakia is in urgentneed of new faces in politics,ones that are not burdened

by the old Meiar-style ofruling. But during this gov-ernment the new faces usedtheir matches to set the

whole house on fire instead

of lighting candles to bringmore light.Someof them arestill clapping their hands asthough they have witnessedan amazing and entertain-ing bonfire, arguing that theaccelerant was put out there

bysomeoneelse,not them.Some critics of SaS now

comfort themselves that theparty might just have dug itsown grave. But for anyone

who voted for the centre-right parties in Slovakia this

will come as cold comfort, asthey see their hopes fadingawaytoo.

5October 17 23, 2011OPINION / NEWS

QUOTEOFTHEWEEK: If we got the trust of the nation, we would even rule alone.

Nationalist leader Jn Slota comments, somewhat optimistically,on his partys chances in the electionset for March.

SLOVAKWORDOFTHEWEEK

EDITORIAL

BYBEATABALOGOVSpectator staff

BYLUKFILASpecial to the Spectator

NEXT: Smer's return assured?Continuedfrompg3

It is of course a politicalvictory for Fico but whetherhe is coming back as primeminister, I am not sure,Mesenikov stated, addingthat hisparty mightagainwinthe most seats in the upcom-ing parliamentary electionsbut it could happen again thatSmer cannot find a coalitionpartner or partners to secure amajority.

None of the three leadersof the SDK, KDH or Most-Hd, speaking at a press con-ferenceon October12 after thedate of the next general elec-tion was announced, ex-pressly ruled out future co-op erat ion with Smer.

Dzurinda responded that sucha questionwas premature.Mesenikov noted that

the situation could becomevery complicated because thethree parties are not likely to

seeka coalitionwith SaS afterthe election, adding that pos-

sible post-election configura-tions will depend on whatpolitical parties enter thecampaign, how their cam-paigns resonate with the

voters and whether newparties might be established

betweennow andthe electionthatcouldaffectFicoslevel ofsupport and ability to form agovernment.

Groszkowski, on the otherhand,sees no otherpossibilitythanFicosreturn topower.

Smer is going to com-promise the centre-right co-alition during the fivemonth s le ft unti l th eelections, he said, addingthat Fico also mightbe able to

takeadvantage of anti-reformsentiments that Groszkowski believes have developed re-centlyin Slovaksociety.

The reluctance of thethree centre-right parties to

cooperate with SaS makes thereturn of Smer and Fico even

more probable, according toGroszkowski.Every conflictamong the

centre-right political groupsreinforces Smer, he told TheSlovakSpectator.

Groszkowski added thatfrom the broader Europeanperspective the currentsituation in Slovakia showsthat there are no significantdifferences between thethree former coalitionparties and Smer in thearena of European and euro-zoneissues.

For some Viseg radGroup politicians, RobertFico, with his clear supportfor the idea of further EU in-

tegration, might be a betterpolitical partner as primeminister than a right-wingpolitician with inconsistentsupport in parliament,Groszkowskistated.

The SlovakSpectatoris an independentnewspaper publishedevery Monday by The Rock,s.r.o.Subscriptions: Inquiries should be made to The SlovakSpectatorsbusiness office at (+421-2) 59 233 300.Printing: Petit Press a.s. Distribution: Interpress Slovakia s.r.o., Mediaprint-kapa s.r.o., Slovensk pota a.s. Mail Distribution: ABOPRESS. EV 544/08. 2010 The Rock, s.r.o. All rights reserved. Any reproduction in whole or in part without permission is prohibited by law. The authors of articles publishedin this issue, represented by the publisher, reserve the right to give their approval for reproducing and public transmission of articles marked The Slovak Spectator, aswell as for the public circulation of reproductions of these articles, in compliance with the 33rd article and 1st paragraph of the Copyright Law. Mediamonitoring is provided by Newton, IT, SMA and Slovakia Online with the approval of the publisher. Advertising material contained hereinis the responsibility of the advertiser and is not a written or implied sponsorship, endorsement or investigation of such commercial enterprises or ventures by

The Slovak Spectatoror The Rock s.r.o. ISSN1335-9843. Address: The Rock, s.r.o., Lazaretsk 12, 811 08 Bratislava. IO: 313 86 237.

JN PALLO - PublisherEDITORIAL

BEATA BALOGOV - Editor - In - ChiefJAMES THOMSON - Assistant EditorDONALD SPATZ - Assistant Editor

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6/12

Coaching organisations in Slovakia

InternationalCoach Federation(ICF)www.coachfederation.org wasformed in1995and isthe leading globalorganisationin its field,with over17,000 members

dedicatedto advancingthe profession by setting highprofessionalstandards, providing independentcertification, andbuildinga networkof credentialedcoaches.The ICFis a non-profitorganisationformedbyindividualmembers,professionals who engageincoaching,includingexecutive coaches, leadershipcoaches, lifecoaches,and manymore specialitiesacrossthe world.

SlovakAssociationofCoaches (SAKO)www.koucovia.sk offerscertification of Slovak coaches, provides asettingwhere coaches canshare theirexperienceswithothersor learnnew informationand knowledge,andacts asa clearing housewherefirmsor individualscanfindspecifickinds of coaches.

InternationalCoach Federation,Slovak Chapterwww.icf.sk hasthemission toprovide top-qualitycoachingby

servingcoachesand thoseinterestedin thisprofessionwithlong-termand systemic growthat theinternationallevelthrougheducationleadingto an ICFcertification inthe Slovak language.


Institutions and organisations

in the labourmarket

TheMinistryof Labour,SocialAffairs andFamilywww.employment.gov.skMinister: JozefMihl

CentralOffice of Labour,SocialAffair andFamily(PSVAR), www.upsvar.sk

EmploymentInstitute (IZ),www.iz.sk a non-profitorganisationstudyingproblemsofemploymentand unemployment thatundertakesresearch onthe Slovaklabourmarkets inareassuchasregional differences andemployeesqualifications.The EmploymentInstituteexaminesissues such

as activelabourmarket policies,lifelong learning, andpreparesmid-termand long-term strategies andforecasts of labour marketdevelopments.

CentralEuropeanLabourStudies Institute(CELSI)www.celsi.sk a non-profitBratislava-basedresearchinstitutefostering multidisciplinaryresearchabout the labourmarketand its institutions, workand workplaceorganisations, business andsociety,and ethnicityandmigrationin society.

Institutions and organisations

in theeducation sector

Ministryof Education, Science,ResearchandSportswww.minedu.skMinister: EugenJurzyca

Centre ofRecognitionofDocuments onEducationwww.minedu.sk thiscentre, underthe EducationMinistry,deals withapplicationsfor recognitionof various diplomas,assesseseducationundertakenabroad andrelated educationalissues.

SlovakAcademicInformationAgency (SAIA)www.saia.skAcademicRankingandRatingAgency (ARRA)www.arra.skFulbrightCommission inSlovakia, www.fulbright.skStateVocational EducationInstitute (IOV)

ww.siov.sk

Labour Code still dividesemployers and unions

A LITTLE over one month haselapsed since Slovakias re-vamped Labour Code becameeffective.Whilethis maybe tooshort a time to assess its fullimpact, thenew legislationhasalready moved Slovakia intothetop10 OECD countrieswiththemostflexiblelabourcodes.

When the Slovak Parlia-mentadoptedthe revised legis-lation on July 13, Jozef Mihl,the minister of labour, socialaffairs and family, welcomeditasgoodnewsforSlovakia.

Itisahugeandverystrongsignal to anyone pondering in-

vestments [here, whether theyare] in Slovakia, elsewhere inEurope, or anywhere in theworld, Mihl said, as quotedby theSITA newswire,after thefinal voting. He forecast that

the changes that it heralded would create some tens ofthousandsofjobs.

Employers have beenmainly positive in their reac-tion to the new Labour Code,

wh ich becam e valid onSeptember 1; they certainlyperceive it to be a step towardsmaking the legislative frame-

work governing relations

between employers and em-ployees more flexible. But theysay that their expectations

wereoriginallyhigher.The final wording [of the

new Labour Code] does not

solve all the requirements ofemployersand allthe problemsof the labour market, MartinHotkof theNationalUnionofEmployers (RZ) told The Slov-akSpectator.

Meanwhile, trade unionsare not disguising their dis-satisfaction withthe law,say-ing that employers willmostly use the new code to

get rid of employees ratherthanhirenew ones.Experience so far, based

on signals from individualtrade unions within the Con-federation of the Trade Uni-

ons of the Slovak Republic(KOZ), which received themfrom some companies and or-ganisations, are that employ-ers are using the new LabourCode aswellasthe crisisto bidfarewell to employees or keepthem in a state of uncertainty[about whether they will re-main employed], KOZ

spokesperson Otto Ewiak toldTheSlovakSpectator.The changes introduced by

the amendment to the LabourCode include, in a nutshell:cancellation of parallel enti-tlement to a layoff notice peri-od and severance pay; longerperiods for fixed-term em-ployment, which can now beagreed for up to three years,

withextensions or renewals al-lowed three times in a three-

year period; a longer layoff no-tification period for employees

with long service in the samejob; and greater protection formothers andpregnantwomen.

The amendment also re-stricts the voice of a small uni-

on within a workplace and setsa 3-percent limit on the profitmargin for companies sellingmealvouchers.

SeeCODEpg8

BY JANALIPTKOVSpectator staff

Employerssaymore labour flexibilitybringsjobs. Photo:Sme

Business coaching captures interest

WHILE coaching is still not widely usedin Slovakia as a tool for staff develop-ment, the economic crisis has providedan impetus for its greater usage, withmanagers as well as companies nowlooking for new ways and approaches toface the challenges brought by the eco-nomic downturn. An increasing interestin the services of coaches, as well asgrowing sales, suggest that Slovakia isfollowing the global trend towards wideruse of thetechnique.

The current economic situation isprecisely when coachingcan bean effect-iveway tosupport managers to find new,creative andunique solutionssuitableforunpredictable situations, Zlatica MriaStubbs, a member of thepresidiumof theSlovak Association of Coaches (SAKO)

and the Slovak Chartered Chapter of theInternational Coach Federation (ICF),toldThe Slovak Spectator.

Coaching is a practice that helpspeople identify and achieve personalgoals. Stubbs explained that coaching is

not training but a means of personal development for individuals or teams inhandling the unique situations in whichtheyfind themselves.

These situations cannot be pre-dicted; they are addressed as theyhappen, said Stubbs. During the cur-rent economic situation this approach is

veryeffective.

Dagmar Kryov, an internationallycertified coach who works in Slovakia,pointed out that the current turbulentand uncertain environment, with its

wide range of possibilities and informa-tion, presents managers with differentkindsof challenges compared tothe past.There is not a single, well-testedsolutionany more and each company and eachmanagerneeds to finda specific solution.

More than 20 years after the re-volution, we have in Slovakia managersand company owners with longexperience, said Kryov. Theyalready have so much knowledge thatthey just need to distil from it the mosteffective essence and also to have a lookat approaches they have not used so far.

And here a coach, by questioning andchallenging,can help.

Companies inSlovakia takean interest

Coaching still belongs among thepractices which are seeking to establishthemselves in the minds of Slovak com-

panies and businesspeople. Coaches heresee interest especially from large com-panies, which hire them to coach topmanagers, as these companies are awareof the benefits coaching can bring. Butsmaller companies remain cautiouspartly because of mistrust, but also by alack of information andmoney. Butprac-titioners see an upwardtrend.

In general we can say that foreigncompanies [when coming to Slovakia] bring with themsomethingof theirownculture, in which coaching is a commontool and so foreign companies are usingcoaching more than Slovak ones, Mar-tin Prodaj, chairman of SAKO, told TheSlovak Spectator.

Jarmila Kurhajcov, deputy chair ofSAKO,confirmedthat largeinternationalcompanies in particular are interested incoaching in Slovakia, either because theapproach has been transferred from par-ent companies or because it is beingprovided as a benefit to top managers.ShenamedSlovak Telekom, Orange,VBor SOB as some of the companies usingtheservices of coaches.

When comparing the situation inSlovakia with that found abroad, Prodaj

points to the higher number of lifecoaches found elsewhere. In Slovakia, hesays, coaching occurs mainly in the

businesssphere.

SeeUPpg8

BYJANALIPTKOVSpectatorstaff

6

LOGISTICS

& TRANSPORT

Next issue:BUSINESS FOCUS

CAREERS

October 17 23, 2011

Onemonth on,

the new law is

stillwelcomedand reviled

Good experience

inspires some firms

Helpingthe unemployedthrough inclusiveenterprises

Barflies at Kemaroksjob office


7/12

Barflies at Kemaroks job office

THEJOBofficein Kemarokineastern Slovakiahas onitsrollspersons whohavebeenunemployedsince the officeopenedmorethan20 yearsagoandthe head ofthe office

blames the current social as-sistancesystemforthe lowinterest amongwhathecalledbarfliesto goout andseek jobs.

Thesepeople havebeenregistered withthe officesince1991,fromwhen thejobofficeswere launchedand

whenregisteringof joblesspeoplebegan,said IvanKo-tora, theheadof theOffice ofLabour, Social AffairsandFamilyin Kemarokin earlyOctober,as quotedby theSITAnewswire.

The current unemploy-ment rate inKemarokis29.2percent; 8,827 peopleareregistered as job seekersthere.Kotora saidthere aremorethan1,000 peoplewhohave been registeredat thejoboffice formorethan10

yearsand individuals withonlyvocationalcertificatesorwith oftenincomplete ba-siceducationcomprisethelargestgroup.Kotora addedthatmany of theseindividu-alshaveno workinghabitsandonly minimal knowledgeandwork capabilities, es-timating theirnumberat 75percentof thoseregisteredathisoffice.

KotoratoldSITAhe be-lievesthat the current socialassistancesystem is respons-ible forthe high long-term

unemploymentin the com-munity because the long-termunemployedwith loweducationand skillswill earnonly a littlemoreif they takea job. Moreover,he said theindividuals wouldlose anumberof socialbenefitssuchas stateassistancefortheirchildrento attendschool, transport benefits,foodallowances, housing as-sistance, activationbenefitsandothersif they foundajob.Kotora estimated thattheincomeof a familywiththreechildrenwouldbe only65permonthhigher ifbothparentsgota job.

Accordingto Kotoraan-otherreasonwhythe long-termunemployedare not

eagertotakea jobare over-dueinsurancepaymentsthattheyowe, specifyingthatfinesor claimscannotbe re-coveredfrom individuals

who arein material need.Kotoragaveas anex-

amplea recruitmentcam-paignby a Trnava-based carfactory held inKemarokin

whichthefirm offeredpro-ductionline jobsat a netmonthly salarybetween500 and600as well asfreeaccommodation,one hotmeal perday andtwotripshomeper month.

Weinvited300 peopletoattendthe selection[inKemarok],said Kotora. El-

evenjobless peopleshowedinterest.


Helping the unemployed

SLOVAKIA is not currently aleader in economic competit-iveness or in the quality of itsbusiness environment withintheEUbutitdoestoptherank-inginanareathatitisnotveryproud of theproportion of itscitizens who have been un-employed for a year or longer.Some individuals in Slovakia

have nowbeenjobless forover20 years a marked changefrom the situation undercommunism, when beingwithout work was a punish-able offence. It is clear thatmany attempts to deal withthe problem have been inef-fective and that there is reallynofastorcheapsolution.

The Employment Insti-tute,a non-profitorganisationbased in Bratislava, is puttingforth some new ideas to com-bat Slovakias long-term un-employment problem, whileadmitting that there is nosilver bullet. But it emphat-ically argues that the prob-lems caused by long-term un-

employment are an urgentmatterfor Slovaksocietyto fo-cus on and that all of its insti-tutions bear some responsibil-ityfor finding andimplement-ingremedialefforts.

Slovakias level of long-term unemployment, definedas being out of work for 12months or longer, was 9.2 per-cent in 2010 and topped therankings within the EuropeanUnion, with Eurostat report-ingthat theaverage long-termunemployment rate acrosstheEU27was3.9percent.

The Central Office of La-bour,SocialAffairs andFamily(PSVaR) recorded 384,220people as being unemployed

inAugust,and 185,001 ofthesehad been unable to find a jobfor12monthsormore.

Because Slovakia ranksamong the countries withhigher long-term unem-ployment, the Ministry of La-bour, Social Affairs and Fam-ily perceives this situation asa problem for the whole ofsociety, ministry spokesper-son Mria Rakov told TheSlovakSpectator.

MartinKahanec,scientificd irector of the Cen tralEuropean Labour Studies In-stitute (CELSI) in Bratislava,

believes long-term unem-ployment in Slovakia has de-veloped from a mismatch in

labour supply and demandthat was caused by theworkforces education and

skills and its geographical dis-tribution failing to keep pacewith the changing structure

of the economy over the pasttwodecades.

Workers who did not ad-apt and did not obtain newly-required abilitiesand skills are

finding jobs only with greatdifficulty, Kahanec told TheSlovak Spectator. The in-creased competition for jobsalso led to marginalisationand exclusion of endangeredgroups in the labour market,especially Roma but olderpeopleas well.

He added that after mul-tiple unsuccessful attempts tofind a job, some of these indi-

viduals lost their workingskills as well as their motiva-tion tolookforanother job.

Inclusiveenterprises

A significantproportionofthose who are long-term un-

employed in Slovakia have avery low chance of success inthe standard labour market,according to the EmploymentInstitute, because their verylow level of labour productiv-ity is not interesting to mostemployers. The institute be-lieves that for this group tohave success in finding jobs,some type of positive discrim-ination is needed. It haspresented the idea of a so-called inclusivemarket, withinclusive enterprises whichmeans two separate but paral-lel markets for services andemployment, i.e. standardand inclusive. The institutestates that its version of posit-

ive discrimination is not ac-complished through govern-ment subsidies but rather bycreating sufficientdemand forcertain types of services, andhence employment providingthoseservices.

The institute introducedits inclusive market schemethis past summer and is nowseeking support for the ideafrom the state governmentandotherinstitutions.

The institute proposes thedevelopment of inclusive en-terprises to employ those whohave been unemployed for along time, people who have

beenreleasedfromprison,andthoseindividuals who are cur-

rently economically inactivefor one reason or another.These inclusive enterprises

would compete to supply services procured by state andpublic organisations.

Michal Plenk, the dir-ector of the Employment In-stitute, told The Slovak Spec-tator that the idea of inclusiveenterprises incorporates mar-

ket principles and contrastedthis with the current ap-proach to supported employ-ment, for example via so-called social enterprises, in

which a company receives aper capita subsidy to employan unemployed or disadvant-agedperson.

Orders are allocatedbased on themarketprincipleas inclusive enterprises willcompete for them, with thecondition that the social goalis also met, stated Plenk,adding that this scheme is

workable only if there areenough services allocated bythe government that inclus-ive enterprises can compete

for within standard publicprocurementprocedures.Here it is important to

realise that when an unem-ployed person gets a job, thestate saves quite a bit ofmoney, Plenk added. Inthe inclusive market, whenthe [government] order is for1,000, 70 percent of thisamount is immediately re-turned to the general budgetin the form of collected taxesand mandatory insurancepremiums as well as unpaid,a nd t hus s av ed, s ocia l

benefits.Plenks conception is

that the state would encour-age state and public institu-

tions to allocate their ordersfor certain services to suit-able inclusive enterprisesthatemploy individualswithlower levels of education

who may have poor workinghabits andlower skills.

In preparing itsproposalsfor Slovakia the institute wasinspired by similar employ-ment schemes in Italy andFrance but Plenk stressedthat the target groups inthose countries are a bit dif-ferent and are smaller andmoreconcentrated.

Slovakia is different inthat the target group in halfof the country is very big,Plenk told The Slovak Spec-

tator.For this scheme to work

Plenksaid bothlabourlegis-lation and public procure-ment legislation must bemodified, adding that having

enough orders for the inclus-ive enterprises and maintain-ing their cash flow at a suffi-ciently high level will be themost difficult task. He said

certain current projects suchas reconstructing castles orbuilding flood defences couldeasily be transformed into in-clusiveenterprises.

One issue is to make thelegislative changes and thesecondissue isto persuade thepublic sphere that this [long-term unemployment] is aproblem not only for the La-

bour Ministry but for the whole public sphere and thatthe Labour Ministry alone hasno chance to solve it and allothers must get involved,stated Plenk, adding that ifeachministryand stateorgan-isation was involved andprovided orders and work op-

portunities to the long-termunemployed, the number inthat category would fall signi-ficantly overa fewyears.

The Labour Ministry views the inclusive marketideaas onepossibleconcepttotackle long-term unemploy-ment and Rakov said theministry is currently review-ing the proposal to assess its

benefitsand risks.Kahanec ofCELSIsees sev-

eral strong aspects to the in-clusive market idea but alsopointed to parts that he viewsasproblematic.

On one hand it creates asystematic demand for ser-

vices from the long-term un-

employed while maintainingmarket principles in thismarket, said Kahanec. Thisgives a precondition for cre-ation of jobs for the long-termunemployed. On the otherhand, it can lead to inefficientpublic procurement and cansegregate the long-term un-employed outside the stand-ardlabourmarket.

The Labour Ministry isalready using a number oftools to reduce long-term un-employment, with Rakovspecifying that state assist-ance for launching a businessand covering commutingcosts are among the most-used active labour market

measures. She added that theministry also gives employersfinancialincentivesto employjob seekers and is also provid-ingsupportforjobsincarryingout anti-flood measures andresolving extraordinary situ-ations. The ministry also sup-ports so-called activationactivities through which theministry seeks to maintainthe working habits of those

who are receiving material-needbenefitsor thosewho arelong-termunemployed.

But the Labour Ministryis currently analysing the ef-fectiveness of theseinstruments, Rakov said.On the basis of the findings

the ministry will decidewhether toreassess individualinstrumentsorcancelthem.

Toreadalongerversionofthisstory, goto www.spectator.sk.

BY JANALIPTKOVSpectator staff

Castle reconstructionprojectscouldbecome 'inclusive

enterprises'. Photo:Courtesyof PeterHoransk

7

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Proposal floated

for inclusiveenterprises to

develop workskills andhabits

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Average salaries of graduatesonline

THEEDUCATIONMinistryhas started publishing vari-ouskinds of statisticsaboutthesalariesof graduatesofSlovakuniversities withtheintentionto helpfuturestu-dentschoosethe universitywhere theywant to study.Theministrys website,www.absolventi.iedu.sk,waslaunchedin lateSeptember,the SITAnews-wirereported.The ministrystatedthatthesalary data is

not necessarily relatedto thequality of theeducationprovidedby theuniversity.

Thewebsitehas informa-tionabout themonthlysalar-iesearnedin 2010 andthefirstquarterof 2011for thosewhograduated fromall 20

stateuniversitiesand oneprivate universityin 2009.Thedatashows that those

withtechnical educationsearnthe most.

Upon completion ofa testperiodforthe website,theministryplansto adddataaboutthe salariesof those

who have graduatedwithabachelors degreeor a PhDdegree.Thedatacan bedis-playedaccordingto uni-

versityand fieldof study,and

allowscomparisonbetweenthe graduatesaverage salaryandtheaverage salaryin theuniversitys locality.

Formore shortnews,pleasego towww.spectator.skCompiledby Spectatorstaff

'Blue Cards' advance in parliament

QUALIFIEDforeigners whoareinterestedin workingin

Slovakiamay soonbe abletoapplyforan EUBlueCardastheSlovakparliamentad-vanceda revisionto thelawon border controlsand resid-enceof foreigners toitssecond readingon Septem-ber8, theSITA newswirere-ported.The EUBlue Cardwould allow qualified for-eignersto workand liveinanyEU country.

Therevisedlegislationpreparedby SlovakiasIn-terior Ministrywill permitindividuals witha universitydegreeor morethan fiveyears of professionalexperi-ence that iscomparableto auniversityeducation to qual-

ifyfor theadmissioncard.Applicantsmust also

provide evidenceof a jobof-ferthat guarantees a salary

atleast1.5timestheaveragemonthly salary in Slovakia intheirparticulareconomicsector. Thelegislationstatesthat thecard will cost165.50 andwillbeissued fora three-year period.

InteriorMinisterDanielLipicsaid thelegislationshouldalso make thelives ofSlovaks livingabroadeasieras wellfacilitatethe reunit-ingof families.It shouldalsomakeillegalmigration,hu-man trafficking andillegal

workin Slovakiamuch moredifficult. The legislationmandatesthat employers

which illegally employ for-eigners willbe requiredto

paythecostsof theirdeport-ationfrom Slovakia.

CODE: Institute says rigidity is reducedContinuedfrompg6

Furthermore, the revisionremovesarestrictiononlongerovertime hours;eases drawingof compensatory leave; setslower premium payments for

overtime work and allowsmore night shifts; mandates alonger probationary period formanagers; establishes five

weeks of annual holiday foremployees aged 33 and older;eliminates special advantagesheld by state managers; andgivesthe go-ahead for employ-ersto shareone jobamong twoor more employees. Six differ-ent minimum salary or wagelevels are maintained in theLabour Code, based on thenatureofeachjobanditsquali-fications. The amended coderequiresthatatleast30percentof employees in a particularfirm must be members of aunionfor itto have therightto

negotiateontheirbehalf.

Thelabourmarketismore flexible

According to the FinancialPolicy Institute, part of theFinance Ministry, the reformof the Labour Code improvesthe flexibility of the labourmarket. It makes temporaryemployment more flexibleand reduces the strictness ofrules when using temporaryemployees.

The more flexible LabourCode should contribute to thecreation of new jobs, the in-stitute wrote in late Septem-

ber. It should have a positive

impact, especially during ex-

pansions. The flexibility of thelabour market helps especiallylow-incomegroups.

Accordingtotheinstitutescalculations, the reform re-duces therigidityof thelabourmarket, asmeasuredbythe so-called Employment Protection

Legislation Index elaboratedby the OECD, by 0.3 points to1.94 points. Thus, compared

with other countries, it willfall significantly below theOECDaverageof2.24percentto

become thetenth lowestintheclub of industrialised coun-tries. But the institute pointsout that the data from othercountriesdatesbackto2008.

Hotk, of the RZ, pointsout that neighbouring coun-tries have not been idle eitherand are now making their la-

bour codes more flexible too.This is currently true of theCzech Republic and Hungary,and means that Slovakia mustcontinue to improve its com-

petitiveness, saidHotk.

Thetrade unionswarn thatflexible may also mean thatemployers may flexibly getridoftheiremployees.

It is necessary to look atthe law in practice, saidEwiak. The provisions of theLabour Code that employers

along with the cabinet pushedthrough are not a guarantee ofhigher employment; this iscreated bya complex ofseveraleconomicandsocialfactors.

Prosandcons

TheRZsaiditperceivesina positive light those changes

which have contributed tomore flexible and transparent

working relations. HereHotk listed the cancellationof compulsory severance pay,and the introduction of thepossibility to provide moneyinstead of all or part of a layoffnotice period; the extension ofthe possibility to use fixed-

term employment; and the in-

troduction of the so-calledflexi-account, i.e. working-timeaccounts.

As well as these changes,the Federation of Employers

Associations (AZZZ) also per-ceives aspositivethe change in

philosophy for negotiationsregarding labour conditions,wherethe LabourCodenowal-lows, within collective bar-gaining but also as part of anagreement with an employees

board, for working conditionstobeadjustedinawaythatdif-fersfrom theregulations of theLabourCode.

Thisplacesmorestressonsocial dialogue, whereas be-fore the focus was almost ex-clusively on wage growth,Rastislav Machunka, vice-president of AZZZ, told TheSlovakSpectator.

KOZhas notrecognised anypositive impacts from the newLabour Code, but reported that

ithas madeit easier foremploy-ers to force employees, for ex-ample,toworkmoreovertime.

Also, we at KOZ receive e-mails describing practices bysome employers who forcetheir employees to work dur-ing holidays without extrapayment, or in extended shifts

which are unsupported by theLabour Code, but at the threatof being sacked, said Ewiak.This is difficult to prove be-cause people are really scaredof losing their jobs. Many ofthemhave previous bad exper-iences. Evenwhen theyturnedto the trade unions they failedto wait for a proper solutiondue to the weak enforceability

ofthelawinSlovakia.

Unions seelittlepositivein thenew LabourCode. Photo:Sme

UP: Coaches see an optimistic futureContinuedfrompg 6

This is also because coaching is relat-ively costly and life coaches are hired es-pecially by private clients, said Prodaj,

who sees coaching as an above-averagepersonal development tool which noteveryonecan afford.

Stubbs sees big differences whencomparing the situation, for example, inEngland, noting that top managers therehave an opportunity to develop and grow

when their company helps them to find acoach. In Slovakia coaching is used more

often when a manager needs to improvein some specific area. Slovakia is far be-hind inthe life coachingfieldcompared toothercountries,accordingto Stubbs.

According to Kryov, there is amarkeddifference inthe goalsof coaching.

Sometimes I see in Slovakia that thegoal is to reach some targeted economicresults or improvement in some kinds of

behaviour, said Kryov. Firms that aremore developed focus more on their senseof workand long-termsolutions.

But Kryov added that coaching isnot a cure-all and that it should be used ina sensitive way so that people do not feelmanipulated.

In Slovakia, the most in-demand services by coaches focus on the businesssector and clients hire coaches to boosttheir performance, improve managerial

skills, andmotivatepeople.Kurhajcov aswell as Stubbs said individual coaching isone of the most sought-after servicescoaches provide in Slovakia, whileKurhajcov added coaching in commu-nicatingwith clients.

Salesupby 35percent

A recent survey among members ofSAKO andthe ICFin Slovakiashowed anincrease ofmorethan 35 percent insalesof coaching services. The experience ofindividual coaches confirms this up-

wardtrend.During a period of crisis companies

often reach for new tools with the hopethat they will help them, andcoachingismeeting this task better than most, saidProdaj. He added that as firms first ex-perience of coaching is typically good

they tend to widen their use of the ap-proach thereafter.The experience of Kurhajcov con-

firmsthe upwardtrend.She sees more ex-tensive and targeted promotion, and thegrowing community of coaches, as lying

behind thistrend.There is a lot of information about

coaching available on the market,Kurhajcov said, adding that conveyinginformation about results achieved fromone company to another is working very

well. Firms are realising that classicalforms of education are not the most ef-fective any more. They are looking forother forms for the effective developmentof their employees under existing condi-tions. On the other hand, employees feelre-trained.

Stubbs believes that this increase also

indicates that coaching is becoming morerespected as an effective means of per-sonal development.

Companies are beginning to realisethat during the current rushed timesthey need to find an effectiveway to sup-

port managers in order for them tohandle better and faster the challengestheyface,said Stubbs.

Kryov believes that coaching is anapproach which reflects the currentsituation.

It helps people to return back to theessence, the sense of things and via self-reflection be able to choose better from allthe available opportunities and life valuesabout which we often do not even havetimeto think.

Optimisticexpectations

Coaches expect the increase in in-terest in theirservicesto continue.

I believe that the upward trend thathas begun will continue, said Prodaj.Coaching is something new, with hugepotential for companies and thus they

willcontinuetouse itmoreandmore.Kurhajcov points out that coaching

brings new ways of solving tasks and situ-ations,plus creativityand uniqueness.

Coaching can start a change in theapproach and the way of thinking ofpeople, creating space for new solutions how to survive or move forward anddevelop, said Kurhajcov. It is a mana-gerial method that secures long-term de-

velopment of humanresources.According to Kryov, coaching helps

to decode events and their meaning for

leaders andthus alsofor theircompanies.It is said that change is [characterist-ic of] life, said Kryov. Coaching is es-pecially about accepting this and working

with change. And this is what currentleaders need.

8 BUSINESS FOCUSOctober 17 23, 2011

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YES: Financial markets reacted calmlyContinuedfrompg1

We call upon all parties inthe Slovak Parliament to riseabove the positioning of short-term politicsand seizethenextoccasion to ensure a swift ad-

option of the new agreement,said Barroso and Van Rompuyin a statement quoted by theReuters newswire on October12. During the October 11 votenot just the future of the bail-out mechanism was at stakebut also the fate of the Slovakgovernment, since after failingto strike a compromise withSaS Prime Iveta Radiovturned the bailout vote into avote of confidence in her owngovernment.

We have to take promptaction, Radiov said shortlybefore her government col-

lapsed, as quoted by the Smedaily. If we expect responsib-ility from our European part-

ners, we have to behave re-sponsiblyas well.Finance Minister Ivan

Miklo argued that rejectingthe bailout mechanism wouldhave immense consequences,great economic and socialcosts, and could pose a threatto the European common cur-rency. On several occasions hedismissed what he describedas the myths surrounding theEFSF.

The myths about the EF-SF are just a tool of populistpolitics, which harms notonly Slovakia, but causesproblems all around theworld, Miklo told MPs,

adding that the good name of

Slovakia had already beenharmed and that parliamentshould prevent more damagefrombeingdone.

SaS boss Richard Sulk ar-gued during the debate overthe bailout that supporting itcontradicts the programmestatement of the government,and that it generally contra-dictscommonsense.

Id rather be a pariah inBrussels than have to feelashamed in front of my ownchildren, Sulksaid.

Themarkets(dont) react

The October 11 failure topass the bailout did not have

any dramatic effect on thefinancial markets since theyalready assumed correctly,as it turned out that Slovakia

would ultimately produce ayesvote,accordingto market

watchers.

In general it was as-sumed that the bailout fundwill be approved by the end ofthe week, but with the sup-port of Smer, Mria

Valachyov, senior analyst with Slovensk Sporitea,Slovakias largest bank, toldThe Slovak Spectator. The

vote has much graver impactson domestic politics ratherthan Europe.

Vladimr Vao, chief ana-lyst with Volksbank Slov-ensko, also expressed confid-e nce on Octobe r 1 2 t hatSlovakias parliament wouldnot break ranks with those ofthe 16 other eurozone memberstates.

The immediate reactionof global financial markets iscommensurate with the un-derstanding that because ofthe linking of the EFSF voteand the confidence vote, theopposition party could not

vote affirmatively, purely forpolitical reasons, Vao toldThe Slovak Spectator. Finan-cial markets at this point are

waiting for agreement on an-other vote, which is expectedto also win the support of themain opposition party, whichhas repeatedly demonstrateditssupportfor theEFSF.

According to Vao, all re-sponsible politicians capableof reading the geographic and

economic map of Europe, aswell as understanding all the benefits that the euro hasbrought to Slovakia in just thefirst two years of its use, and

being aw