Archive of articles - June 2000, page 3

Culture Shock: Less prosím, more non serviam needed

On Easter Sunday in 1997, the owner of a pub in the southern Slovakia village of Tekovské Lužany was summoned to his establishment by a waiter who was struggling to contain a conflict between patrons that threatened to explode into general drunken mayhem. On arriving, however, the owner was seized by the collar by one of the combatants, and told to get lost if he didn't want a punch on the nose.He left.Despite such incidents, people don't often challenge authority in Slovakia. The police, notwithstanding their poor public image, are treated with great ostensible respect by the average citizen, as are bureaucrats and clerks in state offices, teachers, waiters and anyone with a job title making them the head of something. Even doorkeepers (vrátnici) are commonly referred to, only half-jokingly, as the most important link in any firm's chain of command.

This Week

Pharmacies threaten to charge for drugs

Saddled by a debt of nearly five billion Slovak crowns, Slovak pharmacists staged a one week strike at the end of May, to demand that their financial crisis be dealt with by the government.The problem lies with prescription drugs - medicine prescribed by doctors which is partly or completely covered by state and private health insurance firms. By law, pharmacists must give drugs to patients who present prescriptions. But payments from health insurers to the pharmacies are routinely late, leaving the latter with no money to buy the drugs they must distribute.

Bookshop an English lifeline

When Big Ben Bookshop on Bratislava's Michalská ulica shut its doors last spring, foreigners in the capital city were left with few outlets at which to purchase English-language books. Most book stores in the Old Town limit their English selections to a shelf or two, mainly dictionaries, grammar books, travel guides, and maybe some Penguin Classics.But soon after the departure of Big Ben, a new shop entered the scene: Eurobooks, which celebrated its first anniversary on June 15, and today offers any book available in English to its customers."It's usually the first place I go for books in Bratislava," said Dušan Djurovič, himself an aspiring English-language author. "I'm not really a book-reading fanatic. But, I've been quite satisfied with Eurobooks."

Letters to the Editor

Will communist leaders ever be punished?Irish vote not what it appears to beEU snapping at Irish outspokennessDespite bureaucracy, Slovakia still entices

Vanity, all is vanity: Said preacher of Schuster

President Rudolf Schuster's decision last week to lay charges against a journalist who criticised his state of the nation address showed just how little some politicians understand basic democratic tenets such as freedom of speech.The fact that he was even able to lay the charges, under a section of the Criminal Code outlawing criticism of the president, illustrated how much work remains in bringing Slovak laws into line with the rest of the developed world.Here's what the law says, in paragraph 103 of the Criminal Code: "Whoever publicly brings shame on the president of the republic during the fulfillment of his legal duties or in any way during his political activities, may be punished by a jail term of up to two years."

Hyper History

What is a hypermarket?Because the word is relatively new to the English language, various definitions have been coined. Generally, a hypermarket is simply a large supermarket covering a floor space of above 5,000 square metres, with at least 18 cash registers, offering over 30% of non-grocery products and employing at least 500 workers.1989 - As Communism fell, every 1,000 Slovak consumers was served by 330 square metres of retail space, compared to 900 in West Germany; each Slovak retail worker served 55 citizens, compared to 30 in West Germany. Self-serve grocery stores accounted for only 59.2% of grocery sales in Slovakia, while in West Germany the share was 98.6%.

Community Calendar

Czech CentreBoat CruiseInternational Women's ClubAmCham Garden PartyAustrian Embassy

Review: Show rescued by final performance

Robert Meško, the dedicated and energetic director of the Bratislava Dance Theatre, last autumn commissioned two original works for the spring, to be jointly known as The XY Files. He gave each choreographer the same loose guidelines: create something accessible to the public with virtuoso, multi-dimensional dancing.By his own admission, one of the pieces he received was precisely what he was looking for, while the other was not. Meško's candid words give a good indication of what to expect from The XY Files, the dance company's most recent evening-length two-part programme.First up is Chrysalis, an inscrutable, slow-paced piece of esoteric modern dance. As the title suggests (a chrysalis is a butterfly pupa encased in a cocoon), the theme (made clear by the props) is restriction: the four dancers are at times encased in Velcro suits and stuck to large metal triangles.

Globtel first state share to go on bourse

More than a year after the current Slovak government declared its intention to sell its 36% stake in the largest mobile network operator in Slovakia, Globtel GSM, shareholders decided June 6 that the stake would be issued on capital markets - the first ever government-owned share to have been sold in this way.After the decision, the Economy Ministry said that the placing of an as yet undetermined portion of the stake on the Bratislava Stock Exchange was also under consideration to complement the issue of shares on foreign bourses. The ministry added that it wanted the sale of the stake to be completed in September or at latest October this year.

US Steel deal revives investor faith

Shareholder approval of the $60 million US Steel investment in the Košice-based steel manufacturer VSŽ has thrown Slovakia's FDI gates wide open, as other American companies interested in investing in the region are expected to solidify their commitment to the country.Karol Balog, general director of the Agency for Industrial Development and Revitalisation, said that more than 20 US companies had shown interest in Slovakia following the steel acquisition."Just the fact that US Steel is investing here has the large side effect of pulling other US investors to Slovakia," he said. Balog added that US Steel's work with ministries, land owners, embassies, consulates and other organisations had created "bridges", making other potential investors' entry into Slovakia easier.

Loan to help buy back maturing FNM bonds

The National Property Fund (FNM) is looking to both Slovak and foreign finances for a 100 million euro loan as it tries to buy back privatisation bonds to the value of five billion crowns - an enormous 30% cheaper than if it waited for the bonds to mature.FNM president Jozef Kojda said that while talks were being held with banks and lending institutions, both his agency and the Finance Ministry would be loathe to take the loan at an interest rate of more than 8%.Predicting that negotiations on the loan would be concluded within weeks, Kojda added that a new law would allow citizens to use unredeemed FNM bonds to meet their tax arrears - further lowering the amount the FNM would have to pay out.

Top Pick: Sigma Festival 2000: Dark Underground Scene

Representing the best opportunity for Slovak gothic fans to gather in black and listen to their distinct breed of music, the second annual Stigma Festival follows up last year's celebration of the so-called 'dark scenes' of Slovakia. The programme of this two-day festival will be rich with concerts, tattooing, fetish fashion shows, big screen films and concert projections.French gothic music groups LT-No and Mimetic will be the special guests at the festival. From Paris, LT-No blends industrial rock and techno while Jerom Soudan's Mimetic is a mix of techno, orchestra and industrial music.The Slovak 'dark scene' will be represented by bands like The Last Days of Jesus, Monte Rosa and Terminal State, which have already achieved underground notoriety while rapidly increasing their popularity among the younger generation.

Devín banka rescued from crash

Following the near-collapse of Devín banka and a June 8 cabinet agreement on a 2.5 billion crown government bail-out for the struggling Slovak-Russian financial house, both the state and the National Bank of Slovakia (NBS) have come under fire over what many observers are beginning to see as a banking fiasco.Deputy Prime Minister for the Economy Ivan Mikloš and Finance Minister Brigita Schmögnerová were forced onto the defensive June 11 as they explained that the action had been taken reluctantly, saying there was little else they could do."There was no better solution," Mikloš said. Schmögnerová added that the government had been forced into the move to protect other banks' money, without having to resort to the newly-created Deposit Protection Fund. "There are periods when we have to spend some funds in order not to lose more of them," the minister said.

Whirlpool: Unabetted Slovak success

It's early morning, but the halls of the Poprad-based plant of American white goods producer Whirlpool are already a hive of activity as workers wind assembly lines up for their daily production of 4,000 washing machines. In all the bustle, it's easy to forget that this production powerhouse is not a typical example of what happens in most Slovak factories. But it's business as usual for a firm which has been steadily increasing its output over the last eight years.Whirlpool is one of Slovakia's most successful investment stories, one which government officials desperately want to see repeated among other firms. But to hear Whirlpool's Poprad plant director Errico Biondi and Whirlpool Slovakia general manager Martin Ciran tell it, Whirlpool's success in Slovakia has come through hard work rather than government aid.

HZDS calls rallies "a success"

A month-long series of protest rallies organised by the leading opposition party, the Movement for Democratic Slovakia (HZDS), culminated in a demonstration that drew about 5,000 citizens to Bratislava's Námestie slobody (Freedom Square) in front of the Government Office on June 8.Despite the poor showing, HZDS officials were in strong voice. "The current government follows only its own economic and political interests," said party boss Vladim'r Mečiar. "They won't retreat from power, therefore we have to organise civic initiatives which will stop the overall decline of our country. A referendum [on early elections, to be held in mid-November] is the only way to stability."

Last Word

You are the Minister of Economy. The SDĽ [leftist ruling coalition party] claims that you are not doing enough to revive production. In a market economy, do you actually have the tools to do this?Harach: Through legislation you can improve the business, institutional and regulatory environments.But the SDĽ keeps insisting on "economic revival." Have they told you what they have in mind?

Hopes high as Tatra launches e-bank

Managers at one of Slovakia's most successful banks, Tatra banka, are hoping they have stolen a march on sector rivals following their launch of the first e-bank in Slovakia, eliot, on June 5.The virtual bank, which on June 13 already had 9,000 clients, is, according to Tatra banka chiefs, designed to plug into an e-commerce market in Slovakia and principally the capital Bratislava, that is set to take off."The time is right for an e-bank," said Philippe Moreels, member of the board of directors at Tatra banka. "A lot of people have been talking about e-commerce and the Internet for a few years now, and a lot of people have been in contact with us. In Bratislava the number of people wanting to use the Internet for buying and ordering things is moving up - e-commerce is really taking off," he said.

Devín banka: Supervision falling apart

Another bank is in crisis, and a few people are in a huff. Devin banka, the rock upon which Slovakia was supposed to found its recovery of debt owed to it by Russia, has turned into a reef that threatens to tear a large hole out of the state budget.The bank's near-collpase has been staved off by the intervention of the state to the tune of 2.5 billion crowns - a not inconsiderable sum when the budget deficit is under pressure and the likes of the IMF and OECD have been sounding the sirens for expenditure cuts before it is too late. But the government felt obliged to keep the bank floating and to protect the deposits of ordinary citizens caught in the near crash. The Deposit Protection Fund - used to cover accounts of clients in banks teetering over the edge of illiquidity - was running perilously low, forcing the government's hand. Why? Well, after another bank went down earlier in the year, the pay-outs were a little bit more than the Fund could handle.