The European Union contemplates freezing billions in financial support to Slovakia over concerns about rule of law and corruption.
At a Glance
- EU considers sanctions against Slovakia for deteriorating democratic standards
- Potential suspension of up to €12.8 billion in EU funds allocated to Bratislava
- Response to PM Robert Fico’s decision to abolish the Special Prosecutor’s Office
- Slovakia could become the second EU member state to face such penalties after Hungary
EU Takes Action Against Democratic Backsliding
The European Union is taking a firm stance against what it perceives as democratic backsliding in Slovakia. The European Commission is developing a proposal to sanction Slovakia for its deteriorating democratic standards, potentially leading to the suspension of billions in EU funds allocated to Bratislava. This move comes in response to recent actions by Slovak Prime Minister Robert Fico’s government, particularly the decision to abolish the Special Prosecutor’s Office, which was responsible for investigating high-profile corruption cases.
The EU’s decision reflects its commitment to upholding fundamental principles across member states, including the rule of law, democratic governance, and corruption control. If implemented, these sanctions could have significant economic consequences for Slovakia, potentially altering its relationship with the European Union.
Potential Financial Consequences
The European Commission is considering two main proposals to address the situation in Slovakia. The first involves using the EU’s conditionality mechanism to freeze part of the nearly €13 billion in cohesion funds allocated to Slovakia. The second proposal could potentially lead to the loss of all or part of the €2.7 billion from Slovakia’s Recovery and Resilience Plan.
“The Commission is committed to protecting these interests as necessary,” Reynders wrote in the letter, “including by infringement proceedings and proceedings under the Conditionality Regulation and the Recovery and Resilience Facility Regulation.”
The potential financial impact on Slovakia could be severe, as approximately 80% of the country’s public investments are financed by EU funds. Any reduction in this funding would likely have far-reaching consequences for Slovakia’s economy and development projects.
Concerns Over Rule of Law and Corruption
The EU’s actions are primarily motivated by concerns over recent developments in Slovakia that appear to undermine the rule of law and efforts to combat corruption. Prime Minister Robert Fico’s decision to abolish the Special Prosecutor’s Office, which was responsible for investigating corruption cases involving EU funds, has drawn particular scrutiny from Brussels.
“Robert Fico once declared that he wanted to be at the heart of the EU, but today he has pushed us to the edge. Our only remaining partner will be Viktor Orbán. No one in the Union will take Slovakia’s voice seriously,” concluded SaS chairman Branislav Gröhling.
Additionally, Fico’s government has faced criticism over its overhaul of the public broadcaster RTVS, a controversial draft law on NGOs, and the dismantling of Slovakia’s National Crime Agency (NAKA). These actions have raised alarms about the state of democracy and transparency in the country.
Potential Precedent and Wider Implications
If the EU proceeds with sanctions against Slovakia, it would mark only the second time the bloc has used its conditionality mechanism to freeze funds for a member state. Hungary was the first country to face such penalties, with €6.3 billion of its cohesion funds currently withheld by the European Commission.
“Fico is ‘trying to create a mafia state … where the primary goal is to keep the pyramid of power functioning,’ Michal Vašečka, a political analyst at the Bratislava Policy Institute said. The Commission is way more inclined to not repeat the mistakes that happened in Hungary about a situation that was tolerated for way too long and Orbán was allowed to escalate,” he said.
This situation underscores the EU’s growing willingness to use financial leverage to enforce compliance with its fundamental values among member states. It also highlights the challenges the bloc faces in balancing respect for national sovereignty with the need to maintain democratic standards across the union.
Sources:
- https://www.euractiv.com/section/politics/news/eu-mulls-freezing-slovakias-funds-for-rule-of-law-violations/
- https://rmx.news/article/brussels-weighs-freezing-billions-in-eu-funding-for-slovakia/
- https://newsukraine.rbc.ua/news/eu-considers-blocking-slovakia-s-funds-over-1725837330.html
- https://www.bnnbloomberg.ca/business/international/2024/09/08/eu-weighs-blocking-slovakia-funds-over-democratic-backsliding/
- https://thegaze.media/news/european-union-threatens-slovakia-with-funding-suspension-over-democratic-backsliding
- https://www.politico.eu/article/slovakia-eu-rule-of-law-prime-minister-robert-fico/
- https://www.reuters.com/world/europe/eu-executive-warns-slovakia-that-criminal-law-changes-may-have-consequences-2023-12-13/
- https://www.bloomberg.com/news/articles/2024-09-08/eu-weighs-blocking-slovakia-funds-over-democratic-backsliding
- https://www.rt.com/news/603705-slovakia-eu-retaliation-bloomberg/
- https://www.hungarianconservative.com/articles/politics/slovakia_rule-of-law_robert-fico_brussels_eu-funds_hungary/