Volume 11 Number 3

Summer 2002

Constitutional Watch
     A country-by-country update on constitutional politics in Eastern Europe and the ex-USSR

Slovenia - On June 14, Prime Minister Janez Drnovsek of the Liberal Democratic Party (LDP) announced he would step down early in order to run for president in the autumn election, when the incumbent president, Milan Kucan, completes his second five-year term in office. Drnovsek explained that the political situation in the country was sufficiently stable for a smooth change in government. Slovenia, he stated, had completed most of its preparations for accession to the EU and was to achieve its goal of joining the Union by early 2004. However, a month later Drnovsek changed his mind and announced he would stay in office until after the elections, stating that the EU summit in Spain, in June, had changed the situation, since key decisions concerning accession to the EU-including the conclusion of negotiations-as well as decisions on joining NATO would be made in the fall, during the presidential campaign and elections. Drnovsek said he would not like to "leave the European story right before its conclusion."

Drnovsek's most serious challenger for the presidency would be France Arhar, who made a name for himself as central-bank governor, an office he held for ten years, including during the crucial time when the country introduced its own currency. A nonparty figure, Arhar said he would collect the 5,000 signatures necessary to file the candidacy although the center-right Slovenian People's Party (SPP), a junior member of the ruling coalition, had been trying to persuade him to run on their ticket. SPP subsequently decided not to field
its own candidate but to support Arhar's candidacy. Another junior member of the ruling coalition, the center-left United List of Social Democrats (ULSD), nominated Lev Kreft, head of the Philosophy Department at the Ljubljana Faculty of Arts and a member of the party's leadership. General Prosecutor Barbara Brezigar, who enjoys the support of the two largest opposition parties, the Social Democratic Party (SDP) and New Slovenia (NS), and Zmago Jelincic, leader of the opposition Slovene National Party (SNP), have also announced their intentions to run. Other presidential hopefuls are Tomaz Rozman of the nonparliamentary League for Slovenia, Marko Kozar of the Patriot List of Independent Citizens of Velike Lasce, and Stefan Hudobivnik, an independent candidate. The head of the Slovenian Association of Pensioner Societies, Vinko Gobec, is the most likely presidential candidate of the Democratic Party of Pensioners (DPP), the smallest coalition party. The presidential election will be held on November 10, along with local elections.

If Drnovsek does step down, his chosen successor will be incumbent finance minister and LDP vice president Anton Rop. Rop has led the negotiations for the privatization of the two remaining state-owned banks. The state's share in Slovenia's leading bank, Nova Ljubljanska Banka (NLB), amounting to 34 percent, was sold to Belgian banking group KBC, and another five percent stake was sold to the European Bank for Reconstruction and Development (EBRD). These two deals, concluded on May 8 and July 10 respectively, will net the state some 499 million euros. Things have not gone so smoothly with the second bank, Nova Kreditna Banka Maribor (NKBM). A 65 percent state share was offered for sale, but the process was halted late in April, reportedly because no bid met the government's objectives. The issue of bank privatization has stirred up bitter controversy, with some arguing that banks and leading companies should not be sold off to foreigners. The opposition SNP and the nonparliamentary New Party tried to suspend the sale of the banks by filing an initiative for a referendum, since they felt the purchase money for NLB would not even cover the costs of the bank's rehabilitation, which according to them exceeded 2.2 billion euros and was paid for by taxpayers. However, the disgruntled parties only collected 15,000 out of the 40,000 signatures necessary to call a referendum, and their attempt thus fell through.

Spring was tough on the government. The monthly inflation rate in April hit 1.4 percent, bringing the annual inflation rate to 8.4 percent. The situation improved in May and June when the rate dropped to 7.5 and 6.8 percent respectively. The government's goal had been to keep inflation for this year below 6 percent and to bring it down further next year. Inflation is one of the four Maastricht criteria-a country that aspires to join the EU must not exceed the average inflation level in the EU by more than 1.5 percent. After the surge in inflation in the first quarter, the central bank amended its inflation forecast for this year from 5.8 to 7 percent. Economists called on the government to curb the growth of controlled prices and adopt a reasonable wage policy for the public sector, but trade unions resisted.

About the same time, the government was buffeted by its decision to buy a luxurious jet. The media revealed, early in April, that the Falcon 900 EX would cost not the already controversial $35 million, but an even heftier $42 million, because the government apparently "forgot" to include the VAT. The public was outraged and approval of the government dropped to an all-time low of under 50 percent. Opposition parties and the media accused the government of extravagance at a time when thrift was required and reproached it for misleading the public. The government said it did not calculate the tax, since tax would be paid for by budgetary funds and would in turn be added to budget revenues, which according to the government rendered the transaction neutral. But while the jet affair spared the government, it did not spare Uros Lipuscek, the editor-in-chief of the news program on public TV Slovenia, who resigned on April 25 after some 60 journalists accused him of censorship for putting a lid on a news report about the price of the disputed jet. Lipuscek was replaced by Tanja Staric, a TV Slovenia journalist, on May 30, after she won the support of the public radio and television council. The cabinet put an end to the controversy on June 27 when it decided, instead, to buy a cheaper plane, a $28 million Dessault Falcon 2000 EX jet. The money thus saved was earmarked for a new helicopter for rescue missions and border patrol.

Late in March, the country was hit with a strike by doctors and dentists seeking better working conditions. The strike lasted two-and-a-half weeks, during which time doctors refused to work overtime. Their chief complaint was that they were overworked while a number of other doctors remained unemployed. The Slovene Medical Chamber asserted that some 10 to 20 percent of doctors put in up to 180 hours of overtime each month. The trade union demanded that new doctors be employed, as well as demanding specialization for junior doctors, higher bonuses for overtime, and that doctors' wages be brought in line with judges' wages. Health Minister Dusan Keber cited figures showing that the unemployment rate among doctors stood at less than 1 percent. He agreed that the workload should be reduced but warned that it could not happen immediately. He also quoted figures showing that the wages of doctors and judges were almost aligned and that the highest-paid doctors earned more than judges.

The strike was suspended, on April 5, after a deal was reached with the government. The negotiations continued, but the sides failed to draft a new collective agreement by the end of April as agreed in the deal. The negotiations were then suspended by the trade union, which said the government had not fulfilled any of its commitments. Among these commitments, the government was to ensure, on a short-term basis, the employment of 50 new doctors, and to provide specialization for all doctors who completed an exam after the first year of their two-year mandatory internship. The trade union said a continuation of the strike remained an option, but not before autumn. The government, by contrast, asserted that most of the clauses in the new collective agreement had been agreed upon, except for those pertaining to wages and working hours, claiming that the union's financial demands were unacceptable. The doctors' strike was strongly disapproved of by the public.

Fearing that the doctors' strike would provoke an avalanche of demands for higher pay, the government pushed for a bill on public-sector wages to be passed as soon as possible. Despite the disapproval of trade unions, and without the support of opposition parties, the much-disputed bill was adopted by parliament in a 39 to 16 vote on April 26. The opposition parties SDP, NS, and SNP, which voted against the bill, reproached the government for hastiness and the failure to harmonize the document with its social partners. Trade unions representing public-sector workers were also critical, expressing surprise and indignation over the fact that the bill went into second and third readings before a consensus was reached on all disputed issues. The act is one of five in a package of public-administration reforms. When it comes into effect on January 1, 2004, it will introduce a uniform wage system for 152,000 public-sector employees, including civil servants, doctors, judges, police officers, and teachers. The new wage system will encompass a total of 65 wage brackets, with the ratio between the highest and lowest wage being 12:1. This ratio, however, is expected to be reduced to 10:1 by 2008. The new law reduces the number of existing pay bonuses from 80 to as few as 8. It allows for a civil servant to be promoted one wage bracket at a time, every three years.

The newly adopted law was vetoed by the National Council, parliament's upper chamber, a week later, but was passed by the 90-seat National Assembly again on May 7, this time by 53 votes to 20. The Council's objection was that the public was never properly informed about what the law will entail and that it was not based on consensus. Councillors were also critical of the fact that the law also applies to the public radio and television network, RTV Slovenia. Another attempt to derail the law was made by the police trade union, which pressed for a referendum but failed to collect the 40,000 signatures needed.

Despite the effort to have the public-sector wages act passed by April 30, so as to avoid a pay raise for teachers (the increase had been agreed upon last year in the event that the law was not adopted by the deadline), the government and education trade unions, on June 20, signed an annex to the collective agreement that envisages a pay raise on July 1, 2003, and guarantees subsequent annual increases through 2006. This is expected to cost the budget 9.7 million euros in 2003 and an annual 23 million euros in the following years.

On June 10, following lengthy talks, the government, employers, and industrial-sector trade unions signed a wage policy deal for the 2002-4 period. Wages in the industrial sector are to be adjusted for inflation twice a year. The deal anticipates a 4.2 percent base-pay increase in August 2002, to be followed by an additional 2.5 percent adjustment on August 1, 2003. Wages will also be adjusted in December of this and the following year, in order to be brought in line with the growth of consumer prices in the first 11 months of the year. Parliament passed the law, implementing the deal unanimously on June 21. The accord also includes elements of what is called the "European formula," which is to be fully implemented in 2004. The formula includes variables, such as the exchange rate of the euro, the inflation rate in Europe, and inflation in Slovenia's most important trade partners.

An employment bill that regulates all aspects of relations between employers and workers was adopted by the National Assembly on April 24, three years after its first parliamentary reading. The act, which will come into force on January 1, 2003, was adopted in a 43-to-6 vote. Based on a broad consensus, the new piece of legislation introduces a written individual contract between employer and employee. It bans discrimination against job seekers on any grounds: gender, race, color of skin, age, health, disability, religious belief, political or other orientation, trade-union membership, ethnic or social background, marital status, sexual orientation, or any other personal circumstances. It limits the period of temporary employment, bans child labor, gives more power to labor inspectors, and introduces special protection for several categories of workers, for instance, women, persons under 18, the elderly, and the disabled. The act sets compensation for early retirement and introduces a 40-hour week and vacation time of a minimum of four weeks a year.

For several months, the government and public-interest groups have been heatedly debating the value of joining NATO. The country hopes to receive an invitation to join the alliance at the NATO summit in Prague this November. Slovenia's original bid to join failed in 1997, when NATO decided to admit only three countries: Hungary, the Czech Republic, and Poland. At the time, public support for NATO membership was very high, whereas now less than half of Slovenes seem to favor accession. While NATO membership remains a top foreign policy priority along with EU membership, many believe that the people should decide the issue in a referendum. Foreign Minister Dimitrij Rupel (LDP), together with opposition leader Janez Jansa (SDP), has set up a Slovene Committee for NATO to promote membership and has repeatedly pointed out that it is not common to hold a referendum on such an issue. Other senior officials agree with the idea of a referendum in principle but also believe it should be held once Slovenia has received an invitation to join. On May 23, a parliamentary motion to hold a referendum prior to the NATO summit in Prague was voted down by 53 votes to 9. The motion was put forward by the opposition Party of Slovene Youth (PSY), which has so far failed to take a stance on membership in the alliance. Other parliamentary parties, with the exception of SNP, support the bid to join.

According to a monthly survey carried out by the Ljubljana Faculty of Social Studies, public support for NATO was at its lowest in March, when 38.8 percent of those questioned said they would vote in favor of NATO membership in a referendum, and 41.2 percent said they would vote against. This was the first time that Politbarometer, as the survey is called, showed that more were against membership than for it. Members of civil society who oppose NATO have been warning that the public is not sufficiently informed about the negative aspects of membership, such as its costs and that Slovenia would have to submit to the interests of powerful members such as the United States.

Minister Rupel has warned that the alliance does not wish to accept countries that do not wish to be members. He criticized the media for leading an anti-NATO campaign and said authorities must do more to inform the public about the alliance, urging President Kucan to start advocating NATO membership more vigorously. The president replied that belonging to NATO was necessary to guarantee the country's security. According to Kucan, the decision demands a high level of agreement, so a referendum would be useful, but only after it is clear Slovenia will be invited to join. In June, the Commission for Justice and Peace, at the Slovene Bishops' Conference, joined in the appeal to the public to support accession, saying that a decision for EU and NATO membership was the only sensible choice for Slovenia's future. In June, 39.6 percent of those questioned in Politbarometer said they would support accession to NATO in a referendum, 38.2 percent would vote against it, while 22 percent were undecided. However, those who are pro-NATO seem to have stronger feelings than those who are against. The survey showed that of those who said they would participate in a referendum on NATO, 46.9 percent were in favor and 39 percent against.

Meanwhile, support for the EU remained firm, and parliament was busy adopting EU-compatible legislation. On May 29, deputies adopted amendments to the law on local elections that give foreigners with permanent residence in Slovenia the right to vote in local elections. Some 14,000 foreigners will gain voting rights in accordance with the legislation. Foreigners with permanent residence will also be able to run for the post of local councillor though not for mayor. On May 30, parliament endorsed amendments to the law on political parties enabling EU citizens to become members of Slovene political parties. Yet EU citizens-those who have voting rights in Slovenia-will only be allowed to join Slovene parties after Slovenia becomes a full-fledged EU member.

Roma communities in Slovenia will finally be able to exercise their right to have representatives in local communities. Lawmakers gave the go-ahead, on May 30, to amendments to the law on local government that guarantee the Roma representatives on as many as 20 local councils. Deputies confirmed, moreover, that the 20 municipalities must guarantee Roma communities living on their territory one representative in the local council in time for the local elections scheduled for November. An estimated 7,000 Roma live in Slovenia.

Parliament also elected two new Constitutional Court judges to replace Franc Testen and Lojze Ude, who had completed their nine-year terms. Supreme Court Judge Marija Krisper-Kramberger was elected by 57 votes to 17, on March 26, and Supreme Court Judge Joze Tratnik was appointed, on May 23, after being backed by 50 legislators against 24. While the lawmakers from the three ruling coalition parties, LDP, ULSD, and DPP, announced prior to the vote they would support Tratnik, parliamentarians from the fourth coalition partner SPP, as well as the opposition parties SDP and NS, opposed his nomination. The SPP cited the present political imbalance of the Constitutional Court and the fact that the Court would turn even further left if Tratnik were elected. Members of parliament from the opposition SDP and NS voiced doubts over Tratnik's role as a prosecutor under the communist regime. SDP leader Janez Jansa suggested that Tratnik, while a prosecutor, had violated human rights by interfering in the appointment of notaries, to which Tratnik replied that he had never abused his post for political reasons, nor did he intend to do so in the future. The Constitutional Court is composed of nine judges, elected by parliament at the recommendation of the president. Calls have been made for an even number of judges to make it politically balanced.

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