Tag: Slovenia

Oh, The iRonny

After less than a week as the Slovenian-appointed arbitrator at the Arbitration Tribunal, Ronny Abraham quit the post, saying he agreed to the appointment “in the hope that this would help restore confidence between the Parties and the Arbitral Tribunal and to allow the process to continue normally, with consent of the both parties” but realized this is not the case hence it is no longer appropriate for him to serve on the tribunal (this via CPA press release). Obviously, all hell broke loose this side of the Alps where only days earlier foreign minister Karl “Teflon” Erjavec lauded Abraham’s appointment as a victory for Slovene diplomacy. Sneers about victory turning into a defeat were inevitable, as were renewed calls for his resignation. The irony, of course, was not lost on anyone. Or, rather, the iRonny.

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Original picture via the ICJ

To be honest, other than driving Slovenian foreign policy from embarrassment to embarrassment, Erjavec is not really the man responsible here. I mean, sure, his bravado was unfounded as usual, but it was mostly for internal consumption rather than anything else. The man is sly enough not to have done any actual moves in this mess without express backing either of PM Cerar or the government as a whole. Indeed, Abraham was appointed by the government in an extraordinary session and – truth be told – Erjavec, for all his political prowess does not strike pengovsky as having the capacity of coming up with a heavyweight like Abraham, who currently serves as President of the International Court of Justice in the Hague.

Which, incidentally, might be the clue to his resignation. Abraham stated in no unclear terms that the reason for his withdrawing is the fact that one of the parties (that be Croatia) has no intention of adhering to whatever decision the tribunal comes up with. Which is bad enough and not something you want on your resume, especially if you’re late to the party. But it could also indicates that he expect the case to land in front of ICJ some time in the future (something Croatia was hoping to achieve all along). But regardless od whether this happens or not, his message was clear: he will have nothing to do with cases where one of the parties reneges on a written and signed promise.

The arbitration, however, continues. Slovenia will again appoint an arbitrator, probably in the next two weeks (the usual suspect are already lining up in the media stream), the only difference being that the government will take much more flak over it. Both from the media (which have unreservedly echoed politicians’ cries of happiness first time around) as well as the opposition. In fact, while conspiracy theories about who’s really behind the shenanigans were initially on the back burner, they’re on full-throttle this time around. Stupid as they are.

initially, the word on the street was that the Sekolec-Drenik leak was orchestrated by either the Social Democrats (junior coalition partners) or the opposition SDS of Janez Janša. The logic of it being that the SD is a) in control of the intelligence community by virtue of having the defence portfolio and b) still pissed with PM Cerar over #Vebergate and the sale of Telekom Slovenije (which, incidentally, fell through). Or, in the case of the SDS, that the general assumption that Janša still has every fucking intelligence service penetrated with this people back from his heyday as the defence-mofo-in-chief.

Both of these theories have holes the size of Greek debt-to-GDP ratio in them. Namely: the SDS would have been a prime suspect, had it not been for the slight detail of Janša still rotting in jail at the time of the first Sekolec-Drenik convo. At that particular junction the Party was completely focused on getting the Glorious Leader from behind bars and could spare precious few resources to pull a stunt like that – and then sit on it. As for SD, the explanation is painfully simple. Right now, they can’t even tie their own shoelaces, let alone orchestrate what would in these circumstances amount to high treason and get away with it. Case closed on items One and Two

Then there’s the idea that it’s the Americans who were somehow punishing Slovenia for supposedly being too close to Russia. The largest-circulation Slovenian tabloid Slovenske novice even ran a story to that effect. Which is some of the biggest load of bullshit we’ve seen recently in this sorry excuse for a country. Because not only is the Slovenian-Russian hug-fest at the Russian Chapel on the Vršič mountain pass an annual event dating back a whole lotta years (cue Led Zeppelin), the incessant belief that this sorry excuse for a country is a battlefield for proxy wars between superpowers is, well, delusional at best. Damir Lucić in Rijeka-based Novi List took apart the Croatian aspect of this particular argument quite well (Croatian only). Basically, his argument goes along the lines that the Croatian notion of US being in Croatia’s corner on this one is weird (to put it mildly) in the context of US oil company pulling out of oil exploration/exploitation off the Croatian coast, citing border disputes of all things (this time with Montenegro where one of the richest oil fields is tought to be located).

Pengovsky’s favourite (not in the least because it was concocted by moi personally) is that it was the Austrians which picked up the Sekolec-Drenik international call (spying on international calls is perfectly legal, both are foreign nationals and Sekolec lives in Vienna), somehow delivered the goods to Croatia on account of them being the Austrians neighbour’s neighbour (one usually gets along better with those than one’s immediate neighbours) and rocked the boat a bit. On the other hand, Slovenia could have some dirt on Croatia, courtesy of the Dutch, of all people. Which would account for PM Cerar’s appointing his Dutch counterpart Rutte to cast a vote in Slovenia’s name during the last round of the Greek clusterfuck in Brussels (Cerar puzzled a lot of people with that move and took a lot of flak over it).

Had the above really been the case, it would have been one for the textbooks, but unfortunately is has about the same amount of relevance as any other conspiracy theory on this particular issue. Absolutely none. The Austrians even went on the record saying the expect the countries to stick to the agreement (this, admittedly, via the Slovene Press Agency).

Anyways. No matter how you look at it, this is simply yet another case of Hanlon’s Razor, i.e. attributing malice where stupidity suffices. And boy, there is a lot of stupid floating around in this debate.

 

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SuperKarl and Croatian Rapid-Fire Mode

Karl Erjavec is one lucky sonofabitch. In fact, he is so lucky that his middle name could well be changed from Viktor to Felix. I mean, the lucky with this guy is so strong that if he’d been thrown out of an airlock in the middle of the universe, he’d beat the probability of survival of two to the power of 276,709 to one against. Because that’s how improbable it is that Karl Erjavec found himself at the epicentre of not one, but two political and diplomatic scandals in Slovenia and was told by PM Cerar that he will not seek his replacement.

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SuperKarl and the Mystery of The Arbitration. Sounds like a film with Harrison Ford

You see, if this was a time like any other, Erjavec would be flying out of the ministry, legs first, over a scandal with Slovenian ambassador to France where she allegedly embezzled state funds, repeatedly went on unauthorised leaves and fabricated reports. Shit was apparently brewing for some time, while the wrongdoing was uncovered months ago by an internal audit results of which were then sat on by the foreign ministry. The report was released only yesterday after the Information Commissioner ordered the ministry to do so, following an apparently unusually long deliberation on the issue.

However, since Slovenia is momentarily embroiled in the Arbitration Agreement omnishambles which already claimed the two directly involved senior diplomats, PM Miro Cerar apparently decided against beheading the foreign ministry in what is shaping to be a crucial, all-hands-on-deck period in the arbitration on the Slovenia-Croatia border dispute.  Not to mention the quite probable outbreak of a political crisis in Slovenia dismissing the leader of the second largest coalition party would probably incur. Thus SuperKarl lives to see another day.

Namely, after the initial panicky response to what is now dubbed PiranLeaks, Slovenian political class is finally getting its shit together. Thus a new national arbiter will be appointed soonest (probably today), circumventing the usually protracted process in the parliament, in the hope that the arbitration proceedings can continue and ultimately conclude. Which is precisely what Croatia wants to prevent.

The government of Zoran Milanović went into rapid-fire mode, upping the ante almost daily. Thus on Sunday FM Vesna Pusić was still writing a concerned letter to the Arbitration Tribunal, formally notifying it of what had happened, but on Monday PM Milanović already announced the government is considering withdrawing from the arbitration altogether. And when his Slovenian counterpart Cerar said neither country can quit the arbitration (as per agreement), Milanović retorted by saying that it can and it will.

This is the point where things start to get tricky indeed. For all its bravado (probably amplified by the de facto election campaign Croatia is in), the incumbent Croatian government has talked itself into a rather cramped corner. Not putting their money where their mouth is would mean certain ruin for Milanović and his fellow political travellers. But the signals they are receiving are anything but clear and/or encouraging. Namely, the European Commission stated in no unclear terms that it expects the rules of the agreement to be adhered to and for the tribunal to finish the job at hand. The tribunal itself demanded Slovenia explain its version of events. Whether or not this heralds a chastising of Slovenia or not remains to be seen, but it does suggest the tribunal sees itself fit to handle the current clusterfuck as well.

Point being that Croatia used up most of its ammo (provided there’s not another batch of phone-taps waiting to miraculously appear in Croatian media) while everyone else barely made a move. This, too, suggest the pace of Croatian moves is dictated by internal political dynamics (looming elections) rather than the arbitration itself. And while one can fully expect attempts at broadening the field (like Zagreb filing a complaint with the Int’l Maritime Tribunal in Hamburg), the fact is that the Arbitration Tribunal has it within its power to conclude the proceedings as per the agreement. Even if that means unilaterally appointing a new arbiter for Croatia, since Vukas is rumoured to be stepping down at the behest of the government in Zagreb which will not name a replacement, or so the wisdom goes.

Unless, of course, Slovenia has a trick or two up its sleeve, as well. That, at least, that was the translation of Branko Grims’ cryptic praise of SOVA, the Slovenian spook service yesterday. Namely, Gizmo (generally, a pretty undesirable character) said the country’s intelligence services had done an excellent job which led to speculations that Slovenia, too, had been listening in on Croatian convos (link in Slovenian).

If that really is the case, one can only hope no one is stupid enough to actually release the recordings. We’ve seen enough embarrassment these days to go around. Twice over.

UPDATE
This, via the STA

 

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The Wire: Arbitration Agreement Edition

In the good old days, men were men, women were women, Eccentrica Gallumbits, the triple-breasted whore of Eroticon Six was Eccentrica Gallumbits, the triple-breasted whore of Eroticon Six and Slovenia-Croatia border disputes flared up every summer. Like clockwork. Then came the Arbitration Agreement and put an end to all that. And I’m not talking about hipsters here, if you catch my meaning. Since yesterday, however, it feels like the good old days.

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Arbitration Tribunal in session (source)

Croatian daily Večernji list ran a bombshell of a story, claiming Slovenia acted in bad faith vis-a-vis the Arbitration Tribunal and had the country’s agent with the court Simona Drenik (full disclosure: pengovsky knows her personally) discuss tactics of Slovenian case with Jernej Sekolec, the country’s appointee to a five-member tribunal. Obviously all hell broke loose, with the Croats going all Captain Renault on arbitration and hinted at bailing out of the proceedings, which, if the three phone records are to be believed (and so far no-one has denied their authenticity), were going well in Slovenia’s favour.

There are multiple aspects to the issue, not in the least why exactly were the records made public now, when they were apparently made between November last year and January this year. But while Croatia is crying foul, the debate in Slovenia immediately took on a holier-than-thou attitude, taking the Zagreb spin at face value and started dissecting the Sekolec-Drenik convo, looking for clues to support Croatian claims. Which are, well, on rather thin ice.

Namely, Croatia claims that Slovenia tried to influence the tribunal consisting of three independent experts plus an arbiter from either side by coaching the national arbiter in aspects that are beneficial to the Slovenian cause. Well, is the Pope Catholic? I mean, both sides have put forward a memorandum stating their case and left it to the tribunal to decide on the merits of claims. The fact that both countries agreed to appoint a national arbiter shows that the conflicting parties wanted to have a) continuous oversight over the proceeding (as opposed to being merely informed of the decision) and b) the ability to at least try to steer the deliberations to their benefit. Sekolec at one point even implies that everyone subscribed to the tacit understanding that the national arbiters are by default biased (duh!) by hinting at the three foreign experts (occasionally?) meeting separately to discuss the issues at hand.

The gist of the story is that the tribunal is due to release a binding decision in December and – apparently – award two-thirds of the Bay of Piran to Slovenia and provide for a short corridor to international waters. Thus a key Slovenian maritime goal would have been achieved, after more than two decades of border incidents and even armed confrontations on land and on the sea. Which explains why the Croatian side went public with the wiretaps only now and not immediately after they were recorded.

For all intents and purposes, this is a major intelligence scoop by Croatian spooks. Despite the prevailing narrative of “amateur hour”, Slovenian foreign ministry takes security pretty seriously. Doubly so in the case of the arbitration. This, pengovsky knows for a fact. So what we are dealing with here in all probability is not two bureaucrats with a frivolous attitude towards security but rather a major breach or even an inside job (conspiracy theories! \o/). Which means that Slovenian spook services will have a lot of explaining to do.

But the main takeaway here is not that Sekolec and Drenik were indeed confabulating (no-one on the Slovenian side denied the authenticity of the recordings and both have since resigned) but that the Croats went public with phone taps at all. Which means either that a) the breach was since sealed (unlikely, given the panic on the Slovenian side) or b) the wiretap had lost operational potential and Slovenia achieved what it wanted regardless. Which left Zagreb only with the nuclear option, to burn their asset and hope the whole thing takes the arbitration agreement with it.

Doubly so when one takes into account the fact that the final decision of the tribunal is to be published in December, awfully close to Croatian parliamentary elections where the incumbent left-wing government is apparently poised to lose to HDZ, prompting PM Milanović to suck up make overtures to right-wing voters to try and turn the trend. Should the tribunal indeed award more than a half of the Bay of Piran to Slovenia, the projected defeat of the Milanović government would most likely turn into a rout, especially since the Blut-und-Boden rhetoric is even more hyped-up in Croatia as it is in Slovenia. So while official Zagreb is professing its shock and innocence, the conclusion here is that the other party is trying to mitigate the disastrous effects a decision, favourable to Slovenia, international credibility be damned.

Interestingly, while Croatian political class is united feigning disbelief (former PM Jadranka Kosor, who signed the agreement with Slovenian then-PM Pahor, called the deal null and void), it is getting a lot of help from Slovenia as well. Not only did PM Cerar and FM Erjavec immediately leave Sekolec and Drenik hang out to dry, the two have been treated to a generous helping of proper backstabbing, either by various elements of the opposition, trying to cash in on the panic or by would-be arbiters who failed to wiggle their way into this story. Case in point by judge at the Constitutional Court and a long-time diplomat Ernest Petrič who saw it fit to delve right into the fray (Slovenian only).

Curiously enough, the only two high-profile individuals who have appealed for calm and warned against buying into the Croatian narrative are the two people who at the height of their game were seen as arch-enemies – Janez Janša and Gregor Golobič

Both appeal for calm and point out that it is Croatia which is in a weaker position, a stark opposite to the prevailing narrative of a Slovenian diplomatic failure. The President, however, who in his capacity as PM signed the Arbitration Agreement in 2009, was  – 24 hours after the crisis erupted – making hay while sun shone. Literally.

But, to be fair, the man did later say he expected the tribunal to finish the job. Whis it apparently intends to do, as per tweet of this Večer newspaper reporter

Just how exactly this will play out, is hard to say. But it does suggest Croatia found itself in a spot so tight, FM Vesna Pusić stated publicly that it doesn’t matter who made the tapes or how Croatia obtained them. Now, this is a bit of a Catch 22 situation for them, as problematic activity was detected by problematic methods and revealing that makes Croatia just as problematic as it believes Slovenia is. Which doesn’t exactly further their cause. Not to mention that wiretapping senior officials is somewhat frowned upon in this day and age. In the final analysis, the releasing of the tapes seems more like a domestic policy stunt to cover their asses if the tribunal really does decide to award a large part of the Piran Bay to Slovenia than anything else. But for all the talk about declaring the agreement null and void, just because they don’t like the result, it is worth to remember that one series which dealt with wiretapping, bad life decisions and tautologies.

A deal is a deal.

 

P.S.: For a good take on the issue, friend and colleague Nataša Briški provides over at Metina lista (Slovenian only)

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Tele-kom, Tele-go

The supervisory board of the Slovenian Sovereign Holding (SDH) is expected to finally end the sad saga of the sale of Telekom Slovenije today. The state owned telco was put up for sale as a part of the deal then-PM Alenka Bratušek and her FinMin Uroš Čufer made with Brussels in 2013 to avoid a bailout that would send Slovenia into the special Olympics category together with Greece and Cyprus (as well as Ireland and Spain, to a lesser extent).

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Telekom Slovenije management might get new bosses soon (source: The Firm™)

To cut a long story short, the company was put up for sale soon after the SDH was formed and when it became clear that the new Slovenian government will go ahead with the attempted sale, despite PM Cerar’s vocal reservations during the election campaign, all hell broke loose. Cerar’s government nearly went tits-up with the SD threatening to quit the coalition (but didn’t and wouldn’t, because gravy train), there was a very public and very loud stooshie between the PM and his defence minister Janko Veber of SD, who was then relieved of his duties. And in general, as the days passed, the debate on Telekom was becoming ever more charged.

But in the end Deutsche Telekom, the supposed bogeyman in this story did not even place a bid, leaving Cinven, a British fund to go at it alone. Which was a bit of a #wtf moment, especially for opponents of the sale as it became clear that people are not exactly queuing to snap up the company. And after much wrangling the final offer was around 110 euros per share with additional 20 per share later on if certain conditions are met and benchmarks achieved. Yesterday, Telekom Slovenije (TLSG) traded at 98 euros per share. And in the end it was all about whether the SDH will accept Cinven’s offer. And this is where the fun really starts.

The issue is so charged both politically and emotionally that any politician with at least a half-developed survival instinct would rather walk away from it or find a way to maintain status quo. And every so often even PM Cerar gave the impression that he would rather see the Telekom problem simply go away. But it didn’t and in the end, the SDH management OKd the Cinven deal and kicked the issue upstairs, to the supervisory board. Which after much deliberation OKd the deal as well but kicked it upstairs to the government, acting as SDH’s shareholder assembly. And after even more deliberation (an eight-hour cabinet meeting on Sunday last), the government decided to kick the issue downstairs, to the SHD supervisory board, saying they’re paid to do it and that it’s their job.

Thus an interesting situation was created whereupon the SDH management, its supervisory board and government green-lighted the deal, and now everyone is looking around, waiting for someone to say “sold!”. The Board is apparently scheduled to meet later today as to catch a deadline set by Cinven. The fund is threatening to pack-up and leave should the deal be nixed or final decision somehow delayed yet again.

But on the fate of the deal hinges the internal dynamic of the coalition. Namely, should the deal go south at the very last moment (and that at the moment seems unlikely, despite the massive pressure from anti-privatisation camp), the SD, now barely hanging on would probably score massive points, overtake United left (ZL) at the top spot in the polls and probably start calling the shots within the coalition. Most of them, anyway. Because not only is the SD fighting a politically symbolic battle, the outcome will have massive repercussions for the party in terms of access to resources, influencers, decision makers, and the party’s own political prospects.

Watching very carefully will be Karl Erjavec of DeSUS, who is mostly sitting this one out, but is gearing up for a similar fight over Zavarovalnica Triglav, the largest insurer in Slovenia. If Miro Cerar and his SMC prevail, then Teflon Karl better start preparing a different strategy to keep Triglav in state hands and, by extension within his sphere of influence. If, however, the Telekom is not sold, then Erjavec can simply cash in the support he gave to the SD prior to election, divide the spoils and live happily ever after.

Not that the anti-privatisation camp is throwing in the towel, either. While the SD will probably not leave the coalition over the Telekom (not that it could, with its six votes, anyhow), they are trying everything else. Thus yesterday evening an 11th hour attempt was made at derailing the deal. Mladina weekly ran a story about a due-diligence, commisioned by a potential bidder which supposedly showed Telekom shares are worth as much as 190 euro.

Now, under normal conditions would have been a bombshell. But these are not normal conditions. The pressure brought to bear in this case is beyond anything we’ve seen in recent history. At the very least, this is the first time the wrangling, arm-twisting and threats are done out in the open, at the highest level of politics and public life in general. Therefore, the first question that begs asking is why is it then the British fund is the only bidder? This phantom bidder could have made an offer of say, EUR 150 per share and still make a deal of the decade. But it didn’t. And that’s all that matters.

At any rate, whatever the fuck the SDH supervisory board decides today, will probably mark the end of a period. Not just for Telekom Slovenije, but for Slovenian politics. The fallout will be massive. If the deal falls through, what little credibility Cerar’s administration gained at home and in Brussels, will have disappeared as the PM will be seen as being shoved around easily. If, however, the SDH board does finally OK the sale, Cerar’s problems are far from over. Not only on account of DeSUS holding a baseball bat to fend of privatisation of Zavarovalnica Triglav but also because the anti-privatisation camp nearly succeeded this time around and will be anything but disheartened in the next round.

And while early elections are not in the cards any time soon (not yet, at least), life in the ruling coalition will become increasingly difficult as the SD seem to have found their voice (their only problem being that it is the same voice the ZL is using, only much more effectively). With this in mind, the possibility of a coalition expansion or even reshuffle seems plausible.

 

 

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Of Morons and Ministers

After the parliament voted to dismiss defence minister with a 68-11 vote, Janko Veber’s very own Social Democrats predictably decided not to leave the ruling coalition, regardless. And while the debate, most of it held behind closed doors under the pretext of confidential information being used, proved that security issues were indeed secondary and that the real fight was about sale of Telekom Slovenije, the whole political clusterfuck amounted to little more than a storm in a very leaky tea-cup. Namely, the company in question is not as sought for as some wanted and other feared. On Monday, only one binding offer for Telekom was submitted and – adding insult to injury – it wasn’t the Jerrys. It was, in fact, a British investment fund Cinven.

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Telekom Slovenije (TSLG) share in the past year (source: Ljubljana Stock Exchange)

In all honesty, this was in fact more than just a political dust-up as tensions did flare high and the parliament debated Veber’s dismissal. The exact content of the debate is unknown, that being closed session and all, but word on the street has it that Veber and Cerar were ripping each other a new one. Which also explains why the public was excluded. Apparently, there was next to nothing confidential info mentioned in a five-hous-plus long debate but the whole thing was an ugly sight to see and the coalition, especially the SMC wanted to avoid that. But in the end, this was not the coalition-toppling earthquake many have speculated or indeed wanted it to be.

Implosion of Janko Veber

Politically speaking, this was a marginal victory for PM Miro Cerar. Not because he would have done a marvelous job of treading this particular issue, but mostly because Veber fucked up only days before the parliament session. Just as he was gaining some ground on Cerar, he threatened the prime minister with criminal charges on a count of destabilizing country defences, basically telling the PM he should be put on trial for high treason. With that Veber went into self-destruct mode, just revving up the rhetoric and not substantiating it with, well, anything. To put it in Top Fun terms, his ego was writing checks his body couldn’t cash.

Veber’s spectacular implosion overshadowed a just as equally embarrassing event. Namely, just as Veber moved to defenestrate Veber, the newly minted science, sport and education minister Klavdija Markež stepped on a landmine in the form of her masters’ thesis being mostly plagiarized. Which turned out to be true and prompted her immediate resignation, only five days after she had been nominated to the position. A huge embarrassment for Cerar as Markež’s predecessor Setnikar Cankar was dismissed for excessive earnings, tainting the clean image of PM Cerar and his party.

But in the end, it was the SD which blinked. And for good reason. If the party followed the path its VP had set, it would have found itself in opposition together with the United Left (ZL). Which would be bad news for SD as the ZL has the same number of deputies and are much better at being the rabid opposition party than the SD ever was. Not to mention the vast ground-network the SD has to maintain which costs money. Not to mention all the debt the party has incurred over the years and is now struggling to repay. And it’s much harder to do that when you’re in the opposition. Just as the once-mighty LDS. What’s left of it, anyway.

Minister for agriculture and defence

As a result, Slovenia is now in a mildly bizarre situation where it’s government in effect has a minister for agriculture and defence as Dejan Židan, SD’s main honcho temporarily took on defence portfolio as well. Technically, this set-up can last six months at the longest (three months, plus one three-months extension, as per law).

This is not the first time defence department was attached to another sitting minister, however. Years ago, under one of Drnovšek governments, the legendary PM, during one of his defence-minister-voes simply appointed science minister Lojze Marinček. An overall joyous character, the professor-turned-politician took the role in stride and went around official functions (which usually included then-president Milan Kučan) running around asking “has anyone seen my Commander-in-Chief?” and generally making light of the embarrassingly protracted situation.

To their credit, the SD said they will come with a suitable candidate sooner than in six months. although what passes as a “suitable candidate” in this day and age is debatable, to be honest.

Homo homini minister (of defence)

But as if one (former) defence minister making a fool out of himself wasn’t enough, his predecessor (many times removed) had to add his two cents. Or whatever the fuck his measure of monetary value is. Namely, while Veber, or more precisely, his social media manager was doing his best to make his case on Twitter (and failing badly), at some point he responded to a tweet by Janez Janša who accused Veber of lying with regard to secure locations used by the army. Veber replied with some sort of  rebuttal upon which Janša replied with calling Veber a moron. Literally.

While Janša might have actually had a point (at the very least is takes one to know one) the ease with which elected officials, senior political leaders at that, dig new lows in public communication is flabbergasting. Perhaps this is the result of Janša slipping ever more into irrelevance and being unable to do anything about it, but it does explain just why exactly fewer and fewer people want to have anything to do with him. Case in point being the NSi, which stands to reap benefits from what has since been dubbed The Veberkom Affair.

Last week Janša floated the idea of a shadow government, inviting anybody who would join, to well, join. The “everybody” was of course limited to the NSi, the only other opposition party on the political right-wing and the NSi said “thanks, but no thanks”. Janša took the rejection badly (as he always does) and threatened the rejectors will pay a heavy price for it. The truth, however, is that the NSi can in the long run only profit from its newfound spine. Indeed, they will most likely push for some sort of concessions from PM Cerar on issues dear to them. This will probably include but will not be limited to legislation regarding post-war grave-sites, an issue Cerar has already hinted he is willing to meet them at least half way.

And all of a sudden, nobody is in a hurry to sell the Telekom. Even the NSi, disappointed that there was only one offer (more likely: disappointed Deutsche Telekom did not bid), now say it might be prudent to halt the sale. The PM’s office, wisely, is not commenting on the ongoing procedures, but it seems that the political parties at large see the sale of Telekom in terms of short-term income, either for the budget or for party coffers and not in terms of what is best for the company.

For what it’s worth…

In fact, the current political elite is behaving as your average Slovenian small-time entrepreneur, valuing his business by the time and money he invested and not by what other people are willing to pay for it (i.e. it’s market value). As if we learned nothing from the numerous false starts of sale of Mercator retail chain resulting in the final price-tag being only a fraction of what it used to be or from the so-called Brewery Wars, which have led to rise and fall of Boško Šrot of Laško Brewery and, ultimately to the sale of the company for only good 50% more what Laško paid for Union ten years ago to monopolize the beer market in Slovenia.

Thus, the expectations that the value of Telekom Slovenije will rise on its own, are naive at least and the share price reflects that. It has been in a free-fall for the better part of the last two weeks and has rebounded slightly only today. A company which has not released an innovative product of its own for the better part of the decade, has spread itself too thin across the region only so see itself rolling back Balkan operations in the past few years and is being dragged through courts for allegedly abusing its market positions will require much more than just responsible management and ownership to increase its value. Since the state has, unfortunately, repeatedly failed to provide either (with a few notable exceptions far between), there is no compelling reason for the sale not to be realised, pending negotiations.

Unless, of course, the political elite suddenly wants to prove Janko Veber right.

 

 

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Social Democrats Between Cerar And Veber-y Hard Place

in 1994, then-defence minister Janez Janša, refusing to quit office over Depala Vas Affair was removed from office by a parliamentary majority in what was probably one the most tense periods of Slovenian statehood. A defence minister using military spooks against civilians to his own needs is never a good idea, let alone in a fledgling democracy. And in an ironic fuck you by Mother History itself, twenty-one years later, almost to the day, Slovenia is again faced with a defence minister running amok and refusing to stand down. This time, however, it’s not Janez Janša, the now near-fallen leader of the SDS, but rather Janko Veber, of Social Democrats (SD) who directed OVS, the military intelligence service, to poke around the sale of Telekom Slovenije. Namely, he defied PM Miro Cerar and refused his calls to resign. AS a result, the PM will now ask the parliament to replace Veber.

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Picture related

Now, drawing parallels between Janša and Veber only goes so far, although a nasty one pops up on a seemingly unrelated question of handling the issue of Roma family Strojan some years ago. This time around, there is no danger of the select army units being deployed to “secure key installations”, no thousands of protesters in front of the parliament sporting pitchforks and shovels and threatening to do generally unpleasant things to deputies if defence minister goes. But one would think that the political class would have advanced both in style as well as content in the past twenty-odd years. Especially political veterans such as Veber who definitely have enough mileage to know better.

As a result, a clusterfuck of reasonable proportions is now brewing inside the ruling coalition. The SD is, for the moment, standing firm behind Veber with party boss Dejan Židan (who doubles as minister of agriculture) going on and on about Veber doing nothing inappropriate and that SD will defend ministers who do their work. On the other hand, Cerar’s demand Veber step down won him a round of applause from the opposition NSi and SDS, while coalition member DeSUS is apparently still calculating how to profit from this as of today on the same boat with Cerar.

The thing is that although technically his boss, PM Cerar cannot simply dismiss Veber. Because constitution. The ground law namely states that ministers are nominated by the PM but appointed to office by the parliament, hence it is only the parliament which can dismiss them. This stipulation has caused trouble more than once, with mixed results. Amazingly, back in 1992, during his second administration, Janez Drnovšek tried to replace Jožica Puhar of what is now the SD (!) but failed. Puhar later resigned of her own accord, while Drnovšek went on to become one of Slovenia’s iconic political leaders.

The same conundrum, albeit with much more melodrama attached, was faced by PM Borut Pahor in 2010, when he demanded that DeSUS leader Karl Erjavec resign as minister of environment due to a damning report by the Court of Audit. Teflon Karl refused, forcing Pahor to call upon the parliament to remove Erjavec from office. Only then did the man give in and resigned, saying he wanted to spare the PM further embarrassment.

And this is quite possibly the scenario we are facing today. Not unlike DeSUS in 2010, the SD in 2015 can, despite reportedly a strong faction in the party to do so, ill afford to quit the ruling coalition. Because resources. You see, the party is but a mere shadow of its former self. It won 30 seats in the parliament in 2008. Six years later it hardly mustered six. And it fared only marginally better on municipal level. The only asset it really still has is its organisation and ground network. But that needs to be supported somehow, mostly by influence exerted on various levels to either bring in financing or to please the right people. Preferably both. And you can not do that when in opposition.

So while PM Cerar might be faced with an undesirable prospect of a single-vote majority in the parliament (SMC and DeSUS combined can put together 46 votes), going back to square one, reopen coalition negotiations and try to lure Alenka Bratušek’s ZaAB to join in on the fun or even give a shot to a minority government rule, the SD is faced with a much more fundamental question of its survival. Of the party as a whole, not just survival of its current leadership set and the gravy train attached to it. The on

The only thing going in favour of the SD is the vast amount of experience it can draw from. The SMC is still well-versed in the intricacies of political maneuvering and is prone to trip over things that need not being tripped over. One such thing is the SD trying to shift the blame for the current situation on the SMC, saying the PM is not adhering to the coalition agreement by speeding through the motions to replace Veber. But Cerar really doesn’t have any other option. Even before the whole thing escalated to boiling point it was clear the PM can not simply let this one slide. There he was, faced with a minister who clearly stepped is bending over backwards trying to explain why, of all the possible agencies, bureaus and directorates did he have to pick army spooks to assess the sale of Telekom. Furthermore, why the bleeping bleep did that he, while claiming to have acted in the interests of national security, exposed the inner communication of military intelligence which – if nothing else – showed that the service was just as divided on the issue as the rest of the country. I don’t know about you, but I’d call that a security risk. And Veber trying to explain all that was a textbook definition of a shitty job.

If Cerar ignored the issue or even supported Veber, he would have not only condoned Veber’s actions but – just as importantly – empowered the SD to the point of near-invincibility, because if you can get away with abusing military intelligence for political purposes, you can get away with anything. And before the faithful jump citing Veber’s concern for national security, we should not forget his party chief Židan who yesterday more or less plainly told the newsmedia the true casus belli was not national security as such but rather control of the Telekom. And this evening, Veber upped the ante, echoing Židan and even implied that while he was working in the interests of the country, Cerar wasn’t. Which is stopping just short of accusing the prime minister of high treason. And that’s a statement that’s very hard to walk away from. So the question do jour is whether the SD will walk away from Veber or from the government.

If pengovsky were a betting man, he’d bet on the former. Especially since there are other big companies for sale as well and if the SD quits the government, they relinquish what little influence they will have over the issue after the dust settles.

 

 

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Referendum On Same-Sex Marriage Blocked But Not Over And Done With

Slovenian parliament yesterday voted to block the referendum on same-sex marriage by an overwhelming majority od 53 votes in favour nad 21 against. This comes after the SMC ironed out the problems they had with the move by the United Left, SocDems nad Alenka Bratušek‘s ZaAB, which called a special session of the parliament to block the referendum on the grounds that it would put a human rights question up for a popular vote.

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Final vote in favour of blocking referendum on same-sex marriage (source: RTVSLO)

The SMC initially said it would not impede the referendum, causing much furore in the LGBT community among the progressive part od the society in general, especially since they voted in favour of the law. But as pengovsky wrote days ago, there was much more to their misgivings than a simple flip-flop on the issue.

You see, the story does not end bere. In fact it is entirely possible that the referendum will be held nevertheless.

Namely, what happened yesterday was that a new constitutional provision allowing for blocking the referendum was applied for the first time ever. And now the ball is in the petitioners’ court, giving them a chance to challenge the parliament move in the Constitutional Court. Aleš Primc & Co. will obviously do exactly that. Especially since they’ve apparently already collected the necessary 40.000 signatures.

And as usual in Slovenia, this constitutional provision, enacted during Janša government 2.0 was not followed up with necessary legislation. This existing legislation on popular initiative is to be applied in analogy which leaves even more room for manoeuvre that there was meant to be in the first place.

So, the way things stand now, the whole same-sex marriage issue will land in front of nine judges of the constitutional court. The judges have 30 days to decide but they have anything but a consistent record on such issue. Both as an institution and as individuals. In fact, given past experience, it not at all unfathomable that they will allow the referendum to go forward, be it on procedural ground, be it on substance.

And if you’re not worried yet, try this on for size: in the constitutional court, the deck is stacked against proponents of same-sex marriage. Because technically the defendant is the National Assembly as an institution and not political parties which voted in favour of blocking the referendum. This means that the actual legal argument for blocking the referendum will be laid out by the parliamentary legal service. Which in itself is not a problem, since the said service sports some of the best lawyers in the country. The problem is that the parliamentary legal service can by its very definition only make a legal argument.

In all probability, the argument in favour of the referendum will be made by more or less the same legal team which is heavily affiliated with the NSi and by extension the Catholic church and which already has a couple of constitutional victories under its belt, most notably the case against the naming of Tito Street and, more recently, a case against discriminatory funding of private schools with regard to state schools.

But the question at hand is not just legal, it is also ideological and emotional. And nothing prevents the judges to look beyond the mere letter of the law. In which case the odds for green-lighting the referendum increase dramatically.

And should this happen, the petitioners will have been inadvertently given an enormously powerful weapon in the referendum debate. Namely, it goes without saying they would claim that even the constitutional court thinks that same-sex marriage is unconstitutional. Which of course wouldn’t be true, but they would go ahead and say it anyway. Because the more doubt they can sow in the people’s minds, the better. And the proponents of same-sex marriage, an already wily heterogeneous group, would face even more of an uphill battle, demanding even more discipline and consistency.

All of that in a debate on an issue where emotions will ultimately decide. So, while the vote in the parliament was a politically bold move, the issue is far from settled. And until then, the law allowing same-sex marriage is on ice.

 

 

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