Slovenia | SLEEPING WITH PENGOVSKY

Same-Sex Legislation (Predictably) Not Yet Home Safe

Remember when pengovsky wrote that the new same-sex weddings legislation is not yet home safe? Well, guess what…

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Modern Centre Party – SMC (source)

The SMC seemingly flip-flopped on the issue, saying they will not challenge a referendum initiative which would yet again put up the same-sex weddings issue to a popular vote. Naturally most of the supporters of same-sex weddings went apeshit and the SMC was served a proper Twitter-storm. Its intensity was probably confounded by the fact that in the eyes of many people the SMC finally saw the light by voting in favour of the legislation (and doing so en bloc) but has now retraced its steps and found itself on its pre-election neither-nor position.

And, admittedly, it did not look good. Even since Aleš Primc and his band of merry men initiated yet another referendum bid to strike down this harmless but ideologically very loaded piece of legislation, it was more or less the accepted wisdom that the parliament will use the recent changes to the constitution to their fullest effect, prevent the referendum on the grounds of this being a human-rights matter and then let Primc fight it the Constitutional Court. Well, apparently not. At the very least, not just yet. Namely, the ruling SMC stated they’ve no intention of denying the people a vote on an important issue. Later they’ve signaled the decision may be revised but at any rate this turn of events made a lot of people unhappy and they sure let the SMC know.

There are a couple of ways to digest this. The most obvious one is to say that the SMC flip-flopped on the issue or – even worse – that its support for the legislation was not genuine but rather a price they had to pay to join the ALDE (liberals) political group on the european level. This is possible, especially if reports from some months ago are correct and UK LibDems did indeed take issue with SMC sitting on the fence on this prior to elections. But one would like to think that European parliamentary groups take themselves slightly more serious than that and that a true about-face on same-sex weddings would have wider recriminations for the offending party.

So chalk that one to “possible, but not likely” column. A bit more likely is the possibility of the SMC parliamentary group not being entirely on the same page on the issue. There are thirty-six SMC MPs, most of them with little political experience and – understandably – of 50 shades of liberal ideology. So the decision not to go against the referendum head-on (not yet, at least), might have something to do with that. Keeping 36 people on-board on a highly divisive issue while they’re all lobbied and bombarded with arguments from all sides is not an easy task.

And finally, it could be the party simply got scared of its own power and what it can do with it. With great power comes great responsibility and never in the history of Slovenia did such a greenhorn party with such a politically inexperienced leadership hold so much power. And it seem probable, to pengovsky at least, that the moral imperative of ethical policy making simply got the better of them. As a result, Slovenia will once again be the battleground of rational-but-useless arguments in favour of same-sex weddings, opposed by emotional outcries backed up by manipulations, fear mongering and blatant lies by the opponents. The rhetoric is already there. Now it will only get worse (Slovenian only).

But the referendum rules have changed since the Family code was struck down two years ago. Which brings us to the fun part.

Because while the SMC said it will not impede the referendum initiative, there are unofficial signals it might back the bid to prevent the referendum. And while the (centre-)left parties are pushing forward with the bid, they can do didly squat without votes of the SMC. The way this works is that once the petition to hold a referendum is filed, the parliament can decide by a simple majority the referendum is illegal as it deals with basic human rights which then leaves it to the petitioners to challenge the decision at the constitutional court. And with the current composition of the constitutional court suggesting anything but a clear dismissal of the referendum, it seems reasonable to expect that the legislation allowing same-sex weddings will be challenged on a referendum one way or another.

And if there is a referendum, the new rules stipulate that the legislation is struck down if a majority votes against it, but only is this majority represents more than 20% of all eligible voters. Which means about 340.000 people will have to make the effort and cast their “no” vote on referendum day. Which is quite an obstacle.

With this in mind, other dimensions open up which put the SMC decision into a slightly more nuanced perspective. For example, it is not entirely clear whether the special session of the parliament can already be called. Namely, if you wanted to truly dot the i’s and cross the t’s (as lawyer-heavy SMC is probably inclined to do) it seems reasonable to wait and see whether the referendum petitioners will actually collect the necessary 40.000 confirmed signatures. While they’ve done it before, this is a condition that should not be taken for granted. If by any chance Primc & Co. fail in collecting the signatures, then the whole brouhaha will have been in vain and the SMC will have been vilified for nothing. Politically, at least. At the very least, this means the party still has about three weeks to decide whether to fight the referendum in court or not.

But the last – admittedly most wildly optimistic – scenario is also the most interesting. What if, just what if the referendum is held without being challenged in court and fails? What if the majority of the people votes in favour of the law or at the very least decide same-sex weddings are a non-issue and don’t bother to vote, thereby helping the legislation to survive? If that were to be the case, the SMC would suddenly be in the position to claim it gauged the public mood much more accurately than any of the left-wing parties. And even if their reasoning did not go this far, a favourable referendum outcome would give them back much of the political credibility they’ve lost in the past couple of weeks.

At any rate, there are a number of ways this story can unfold and not all of them are negative. But as pengovsky was warning even as the left was celebrating, the hard work had only begun.

Eurothings Slovenly But Syrizaously Going South

Since Greece and the rest of the Euro zone gave each other the finger the other day, a few things need to be said before things go syrizaously wrong in this neck of the woods. What was expected to be the day of another euro-compromise, brokered in the wee hours of the morning, the whole thing fell apart, seemingly with Greece and its new government on one side and he rest of the Eurozone on the other.

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But in reality, what we have here is not a game of playing chicken, with Greece and the Eurozone counting on each other to blink first. Rather, what we are witnessing is a Mexican stand-off of gigantic proportions where almost every member of the Eurozone is holding a gun to the head of most other members and at the same time virtually all Eurozone governments are held at gunpoint by their electorate, something they’ve only themselves to blame. Namely, by bailing out German and French banks with their taxpayers’ money and now trying to make the Greeks foot the bill, they’ve found themselves in exact opposite of Greek Syriza: while Tsipras and Varoufakis promised to end the vicious cycle of more cuts for more money, leading to less growth which creates the need for even more cuts and the need for even more money (and so on ad nauseam), the governments of Germany, The Netherlands and even Slovenia (to name but a few) are under increasing pressure to make sure the taxpayers get their money back.

Thus, a clustefuck of gigantic proportions was created, where legitimate positions of all governments involved preclude one another and are starting to resemble the old joke about an irresistible force and the immovable object. There rarely was a greater need for the (black) art of the European compromise.

The position of Slovenian government is especially interesting in this case. Apparently, finance minister Dušan Mramor more or lees told his Greek colleague Yanis to go Varoufakimself with his ideas of increasing public sector employment and expenditure while everyone else – including Slovenia – is slashing costs to make ends meet. Not that the ends are anywhere near each other – Slovenia will have to raise 1.5 billion, 15% of the budget, in loans in 2015 alone.

Reassuring Mramor

Mramor was apparently indignant over the fact that in per capita terms Slovenia is among the most exposed member states in the Greece omnishambles but was having no say in the matter as Tsipras and Varoufakis were negotiating with the big boys (and girl) only. As if Mramor way trying primarily to reassure himself by lashing out at Greece rather than trying to find some middle ground or even support Greece in its, well, “need for more time“.

But reassuring himself or the Slovenian taxpayer Mramor is not. It is more than obvious that most (if not all) money loaned to Greece will never get repaid and that Franci Križanič, FinMin in the Borut Pahor government (2008-2011) was talking bullshit when he said Slovenia will make money with the loan.

Mramor’s going after Greece suspiciously coincides with feces coming dangerously close to a mechanical air ventilator in the case of 3-billion-heavy bailout of Slovenian banks in late 2013.

Junior bonds extinction

Namely, accusations were made by Tadej Kotnik (curiously, a biophisycist and vicedean of faculty of Electrical Engineering) that recapitalisation of the banks and especially the accompanying extinction of subordinated bank bonds (in effect, complete nationalisation of Slovenian banks) was illegal, pre-arranged and non-transparent. But the gist of it, it seems, lies in the allegation that the Bank of Slovenia (this country’s central bank, aptly shortened to BS) back-dated a key measure to cover up the fact that eradication of junior bonds was agreed-upon in advance with the European Commission and was not some sort of a last-ditch measure to save the banks.

Now, Kotnik, a private individual and a member of the Association of Small Shareholders, apparently invested heavily in subordinates and thus lost quite a substantial amount of money. He also challenged the bond extinction at the Constitutional Court but the court deferred to the European Court of Justice as the bailout measures were coordinated with the European Commission and under EU law directly.

Anyhoo, the thing is that the Bank of Slovenia, specifically Governor Boštjan Jazbec fucked up their initial response, hiding behind legal clauses and non-disclosure of financial information, thus giving credence to Kotnik’s accusations which are, it seems, mostly based on one or two sources within the BS.

obviously all hell broke loose, with MPs screaming for a parliamentary investigation, various political parties scrambling for cheap political points and Jazbec, after a press conference was finally held, fucking up further with a seriously distorted view of (non)accountability of the institution he heads and the office he holds.

Namely, Jazbec, after explaining that everything is OK and within the bounds of the law and that two wildly different appraisals of the state of the largest bank NLB are not all that unexpected decided to explain the matter further to… the government. As if it wasn’t the parliament who appointed him to the position and as if it wasn’t the parliament who represents the sovereign of this country, the people. Or, as they are more commonly known these days, the taxpayers.

While the government of course needs to be in the loop, Jazbec would do well to address the parliament first, since it was the people’s euros he spent on propping up the banks. But as things stand now, he is making one small(ish) mistake after the other and if he doesn’t stop digging soon, he may find himself in a hole too deep to climb out of. Especially since political parties are scrambling to put a daylight betweeen them and anything that might make them look responsible for the disastrous state of the banking sector. Which is why the Social Democrats are all of a sudden deeply worried about the situation. As if it wasn’t them who ran the financial portfolio in the ill-fated Pahor government (when things started going south for real) and who were junior partners in the Bratušek government which engineered the bailout. Almost the same goes for the SDS, which led the government during the pre-2008 spending spree and which performed a couple of smaller recapitalisations of the NLB (couple a hundred million a pop) and is now screaming bloody murder and demanding a parliamentary investigation.

The sad reality

The reality, of course, is much more prosaic. After Greece and Cyprus, Slovenia was to be next in line for the Troika Treatment. And since the political mantra in the Eurozone at the time was that individual stakeholders, not just the state as such must bear the cost of the bailout, it was more or less obvious that erasing junior debt was unavoidable. Even more. If there is one point where Tadej Kotnik is correct is that the whole process was most likely pre-arranged and coordinated with Brussels. You see, at the time Slovenia for all intents and purposes was under administration, with the European Commission pouring over every aspect of economic and/or fiscal policy, confirming some, rejecting others. And so it seems plausible that the bailout of the banks, the extent and the mechanics of it were approved by the EC before they were enacted by the Bratušek-Čufer-Jazbec trio. That the Commission formally approved the measures taken fairly soon thereafter only goes to strengthen the point.

The above seems to suggest that the problem was not so much in the execution of the bailout but in the definition of the problem. You see, at the time the fate of Slovenia was in the hands of a budget specialist (Bratušek), a higher-level bank manager (Čufer) and a macroeconomist (Jazbec). None of them were in office for a particularly long time, while the country as such was held at gunpoint, not to mention the political turmoil on the home front. For them to understand that the problem was one of policy concept and not (only) of numbers would demand an extraordinary insight. Even more – even if they had the insight (it seems plausible that at least some people advising them did manage a wider outlook), it remains doubtful if they had the room to manoeuver.

Which, not surprisingly, brings us back to the current Greco-German spat. Unlike the Slovenian government of Alenka Bratušek, the new Greek PM Tsipras and his FinMin Varoufakis fully understand the problem is political, even ideological. But they, too, have precious little wiggle room. Because just like Syriza is acting on a mandate by the people, so, too, are the Germans and the rest of the Eurozone. At some point they will have to explain to their voters why they used their money to prop up mostly German and French banks, overexposed in Greece. I’m sure it seemed a good idea at the time and in the panic that gripped the EU when Greece all but defaulted, the last thing anyone wanted was a bank run. But to bailout its banks, the Eurozone took out an even bigger loan with their voters and not being entirely candid on what the money was being spent on.

Extend and pretend

With this in mind, it is not only Greece that is – in the words of Yanis Varoufakis – resembling a drug addict. The (rest of the) Eurozone, too, is asking their voters trust and understanding they may not be ready to give anymore. Which makes the ruling centrist(ish) parties in Europe nervous which, by extent, leads to some uneasy moments of disturbing clarity, such as German FinMin Schäuble apparently saying the Tsipras government is acting irresponsibly. Patronising, even smacking of colonialism. But in reality most likely nothing more than a show of frustration at the realisation that even if the new Greek government does decide to play ball and continue with the established sparprogram, the game is more or less up and “extend and pretend” is from now on a two-way street.

And that no one knows how long the voters are going to continue buying it.

PM Bratušek Resigns, Looks To Early Early Elections

Prime Minister Alenka Bratušek resigned from office earlier today. This was the end result of a coalition pow-wow on Saturday where apparently cooler heads prevailed in the post-PS-congress fuck-up and realised it don’t matter a pair of dingo’s kidneys if the government holds on for a few more months and agreed to hold early elections ASAP.

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AB’s letter of resignation (source)

While president of the parliament Janko Veber said in a statement about an hour ago that 22 June is not feasible as election date, other summer dates are being looked at. The “problem” is that school recess starts that weekend as well which might pose a problem from a constitutional point of view (a bit more on this later on).

It all went tits-up

That the ruling coalition went tits-up became apparent a week ago, when Jay-Z ousted Bratušek as PS chief. Disintegration of the party followed, with the PM quitting PS and taking half of the parliamentary group with her, while Zoran Janković was left to pick up the pieces.

Thus a curious situation ensued, where the PM is fact a political apatrid (EDIT: although she is apparently in the process of forming her own party), while president of one of the coalition parties apparently wasn’t even invited to partake in the huddle. Namely, Zoran Janković was reportedly overlooked when invites for the meet were sent out which technically makes even more of a mess of the whole thing. Which gives enough of a glimpse of the clusterfuck we’d have experienced if Bratušek administration were to try and continue in the current setup.

The word “fugly” would not even begin to describe it. Just to give you an idea: Although Bratušek left the PS, Janković insisted the congress gave her full support to stay on as Prime Minister, while voting him in as chief of the party. How he came to this conclusion remains a mystery, as congress didn’t vote on the issue. Bratušek on the other hand fulfilled her promise to quit the party and the premiership if she loses the congress vote, putting Slovenia in the classic “what happens if an unstoppable force meets an immovable object” conundrum. Luckly, that particular scenario was avoided. Temporarily, at least.

That it not to say that Jay-Z will not have a say in the way things unfold. Even though the PS parliamentary group split down the middle and the party under Janković is left with 13-or-so MPs (out of 29 they began the term with), it will take a nod from Janković as well to try and cut a short-cut to early early elections.

The procedure

Namely, the procedure that is triggered by resignation/fall of the government calls for at least three rounds of attempts to find a new majority in the parliament, with ten MPs having unlimited options to put forward their candidate. Thus, theoretically both PS and the SDS as well as any other group that could muster ten MPs (say, the SLS-NSi combo with its newfound happiness) could delay elections for a considerable time.

This, however, will not be the case, apparently. While the SDS remains suspect (pun very much intended;) ), there seems to be a consensus, albeit grudging one, that no parliamentary party will seek to put forward their PM nominee. For his part, president Borut Pahor already said he will not be putting forward a nominee as well, which basically covers all the bases and open the theoretical possibility of elections as early as summer.

Having said that, things will probably not go smoothly. Aside from the fact that summer early elections clearly favour only current parliamentary parties as their alternatives outside the parliament (such as once-parliamentary Zares now led by Pavle Gantar or the up-and-coming Verjamem of Igor Šoltes, Solidarnost or the United Left) need more to get their operations running, there is also the possibility that time will simply run out.

Due date

Elections are normally not held during the summer break (last week of June to mid-August) nor are they called in a manner which would mean the campaign would be held during the break, although the latter is more of an accepted convention than anything else. And since elections can be held forty days from the act of calling them at the earliest, this means that if anything is to happen, it has to happen by next Tuesday. Failing that, we’re most likely up for elections in late September.

Additionally, there is the factor of a possible constitutional contention of the election date, especially since the Constitutional Court seems to have acquired a taste to meddle in policy questions, case in point being the real-estate tax and the archive referendum, where they nixed May 4th as voting date on a marginal but politically prominent question of UDBa archives, courtesy of the SDS.

But even though we can reasonably expect the party of Janez Janša to stall things a bit (well, quite a lot in fact, since they’re again talking about impeachment of Alenka Bratušek), they’ve apparently started to prepare for a period without Janez Janša as their point-man. Following the upheld conviction of the SDS leader who is to serve two years in prison for corruption, SDS MP Romana Tomc resigned as vice-president of the parliament. Officially it was done in protest over “politically motivated conviction against Janša”, but it is quite possible she is designated to replace Janša at least temporarily.

Romana Tomc, SDS’ Alenka Bratušek?

Tomc was rumoured to have been considered a replacement for Janša during the 2012-2013 winter uprisings which called for his resignation as PM. Nothing came of it as a new coalition was formed under Alenka Bratušek, but Tomc has been near the limelight ever since. With no immediately apparent political baggage she just might be the person SDS is looking for to fill the void Janša’s (temporary) removal from inner circle of politics will bring.

Since SDS is in a good position to win the parliamentary elections as things stand, an apparently moderate interim leader, not unlike Alenka Bratušek (both gender- and rhetoric-wise) might just give that extra boost the party needs to climb all the way to the top, which has eluded Janez Janša but once for the last quarter of the century.

Anyways, as of today, Slovenia is in election mode, level 999 and will remain so until mid-autumn when local elections are held. Between today and then, however, we are to cast our votes in EU elections (25 May), archive referendum (rescheduled for 8 June) and early parliamentary elections. God forbid the President were to resign.

On second thought…

Pro-Moscow Post-Communists Running EU And NATO, Apparently

To say that Slovenian government was caught off-guard by the Ukraine crisis is an understatement. It has, in fact, provided ample proof that for a while now Slovenian top-level diplomacy is running on empty, moving only on inertia of past successes, relatively able (but limited in scope and reach) middle magament and occasional strokes of luck.

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Janez Janša addressing the EPP Dublin Summit (source)

While Karl Erjavec and his simpleton-diplomacy were taken apart on this blog already, the man is by no means alone in this enterprise.

Roman Jakič and the Sochi controversy

The embattled defence minister Roman Jakič found himself in a middle of a controversy at the beginning of all of this when he travelled to Sochi as head of the Slovenian Paralympic team. Namely, Jakič’s son Gal Jakič is the only Slovenian contestant in Winter Paralympics and Roman Jakič spends inhumane amounts of time and energy to be there for his kid who became disabled some years ago through no fault of his own and help him partake in various sporting events. For that, Roman Jakič deserves all the praise in this world.

The problem of course arises when the super-dad happens to be a defence minister of a country whose official position is that Ukraine’s territorial integrity was violated by the very country which is hosting the Paralympic games. A visiting defence minister in whatever capacity he may be, just might send the wrong signal. To his credit, Jakič (who is under criminal investigation for his role in the Stožice project and is getting a lot of political flak over it) tried very hard to show that the office he holds has nothing to do with his being in Sochi. He even took annual leave and (apparently) paid the cost of the trip out of his own pocket. But senior public officials do not hold office from nine to five. A defence minister is a defence minister 24/7 and neither rain not sleet nor snow can change that. So, technically, Slovenia, a NATO member, has a senior government official present in Russia. Go figure.

Erjavec strikes again

But the woes of Roman Jakič pale in comparison with Erjavec digging an ever deeper hole for himself. Thursday last, while sparring with Dimitrij Rupel on national television (and trumping him in the process), he tried to spin his “Slovenia should mediate between EU and Russia” fuck-up. Admittedly, he did a half-decent job although no-one really believed him. But hey, he tried (for the record, he used the old they-only-published-a-part-of-my-statement gambit). OK, so he overdid it when he told the audience that US Secretary of State John Kerry told him his initiative was “subtle”. Really? Was Karl’s sarcasm detector off-line or what?

Be that as it may, all that was water under the bridge when Erjavec, foreign minister of a NATO and EU member, managed to say that Slovenia supports territorial integrity of Ukraine and conceded in the same sentence that Crimea will in all likelihood become part of Russia. Get it?

I mean, even though Erjavec most likely told what everyone else was thinking, a EU foreign minister simply does not say things like that. Such statements show Russians they’ve achieved what they wanted, namely to create a “new reality on the ground” and that the West is intimately apparently pondering telling Ukrainians to simply go along with it. This translates into EU a) not giving a pair of fetid dingo’s kidneys about borders in general, opening up a plethora of highly unwelcome scenarios all across the continent, most likely in the Balkans and b) apparently forgot the 1938 Munich lessons.

Janša criticises Merkel

The above, however, is nothing, and I mean nothing compared to the address by Janez Janša at the EPP Summit in Dublin the other day. Namely the nominal leader of the Slovenian opposition single-handedly discovered there are “post-communist and pro-Moscow forces at the head of EU and NATO member state” and added that all of this could be avoided if only Georgia and Ukraine were admitted to NATO in 2008.

What we have here, ladies and gentlemen, is warmongering and paranoia of the first order. Admittedly, it takes a lot of guts to go up there and tell Auntie Angela she fucked up. Because it was her who blocked NATO enlargement to include Ukraine and Georgia. And today she’s (apparently) the only foreign leader Vladimit Putin will talk to with some sort of frankness. Which makes her a pro-Moscow element. Not to mention the fact that outgoing president of European Commission Jose Manuel Barroso was a Maoist in his student years. Talk about post-communists running the EU. The question therefore is, did Janša really mean what he said or is he getting just more and more desperate and is running short on enemies to throw into the fire, supplementing them with friends?

The reality (that be the thing Janša is working very hard to ignore) of course is that NATO could very well have found itself in the middle of a shooting war with Russia in August 2008 had Georgia been invited to the alliance some months before and NATO membership of Ukraine would probably only have sped up the events that are unfolding today. But what you see on the video above is vintage Janša. The only difference between that and the version we get at home are levels of cynicism (apparently beyond him in English) and occasional graphs depicting the communist conspiracy.

And post-communists, as we all know, are everywhere. Even in the EPP, apparently. One of them, a proud platoon leader of a 1977 Yugoslav military march commemorating Marshal Tito, addressed the Dublin Summit. But, admittedly, he’s not running a EU/NATO member state. Not anymore, that is.

A Reshuffle By Any Other Name

What turned out to be a resignation-happy week, culminated on Friday last with a collective fuck-you-we-quit by the trio heading the KPK, Slovenia’s anti-graft body. Goran Klemenčič, Rok Praprotnik and Liljana Selinšek announced their resignations in what they called a protest against the fact that – despite their best efforts – the powers that be are doing their best to ignore the systemic issues of corruption in Slovenia (full statement in English here)

Samo Omerzel (DL) and Jernej Pikalo (SD) (source: RTVSLO)

The move opens a plethora of interesting questions, not in the least the fact that their successors must be appointed by the very man who (at least by the virtue of his position) oversaw the making of the clusterfuck that is TEŠ6 coal powerplant. That be Borut Pahor, of course, who as PM did nothing to stop the investment which soon thereafter spiraled out of control and went from a doctored 600 million to ass-whooping 1,4 billion euro without a single megawatt of energy being produced yet. But we’ll deal with that in the coming days. Mostly because there is shit going on in executive branch of the government as well.

Namely, after she ditched minister of economy Stanko Stepišnik and minister of health Tomaž Gantar bailed out of his own accord, PM Alenka Bratušek was faced with a miniature coalition crisis. Predictably it was Karl Erjavec of DeSUS who started making noises about how a proper cabinet reshuffle is overdue and that it should include head of SocDems Igor Lukšič who opted not to take on a ministerial position when Bratušek formed her government.

This flip-flop position was thus far very profitable both for Lukšič and his party. The SD is leading in every poll imaginable not in the least because Lukšič manages to avoid the daily bad press and lets senior party figures take the heat while he supports the government unless it is opportune not to do so. Seeing this, Karl Erjavec thought he might squeeze out a concession or two, saying that unless Lukšič doesn’t take on a portfolio, he himself will “think about him remaining a part of the government as well”. Naturally, no-one took him seriously and lo-behold! Erjavec has taken on the health portfolio as well, it was announced yesterday. Which makes for a fun combo: Karl Erjavec, foreign and health minister.

A rather less funny but far more intriguing combo is Uroš Čufer, who – in addition to finance – temporarily took on economy portfolio as well, thus joining two areas (supposedly) critical to turning the fortunes of this sorry little excuse for a country. Legally, this “pro tempore” solution can only be done for a period of six months (three plus three) and it seems PM Bratušek opted for it because Erjavec may still get what he wants, while Čufer will either go boom or bust in the same period. For “boom” read survive the banking stress tests and sell off at least some state-owned companies and for “bust” read none of the above.

At any rate, while no-one is calling it like that, an across the board cabinet reshuffle is in the air. Especially since the coalition will begin negotiating a new agreement, extending until next parliamentary elections in late 2015. Also, minister of infrastructure Samo Omerzel is in a bit of a fix these past few days over his company doing business with state-owned motorway company DARS and although only today the company stated that it bailed out on extending the deal, it may be to little to late. The PS is making noises that Omerzel should go for the same reason Stepišnik had to go – not because he did anything illegal, but because it was unbecoming. And on merit, they have a point. Politically, however, this can heat up things a bit and not just because the opposition is clamouring for his removal.

The thing is that not only is DL supporting their minister (obviously) but they would – if push came to a shove – probably make demands against other coalition partners as well. Which points to the conclusion that the Social Democrats will have to say goodbye to one of their own sooner rather than later. And that can only be minister of education, science and technology Jernej Pikalo. Not because he would do anything really wrong, but because he has the least clout of the three SD ministers in the Bratušek Government.

With Dejan Židan being the Number Two of the Social Democrats and the key senior government official in a recently launched anti-tax-evasion campaign while Anja Kopač Mrak is heading the labour, family and social department which is a can of worms few people want to touch let alone open in the first place. Which leaves Pikalo. His replacement would mean that each of the coalition parties had to throw one of their own under the bus and – in theory at least – everybody would be happy.

This, combined with new ground-rules being laid, the possibility of parties switching some portfolios among themselves and the fact that PM Bratušek is looking to replace three to five ministers within a year of her taking office is nothing short of a full-blown cabinet reshuffle. It’s just that nobody will be calling it that.

PM Bratušek Down A Minister. Just Not The One SDS Was Aiming For.

Late last night, after a 15+ hours of debate, the parliament voted to reject the bid to oust finance minister Uroš Čufer. The motion was filed by SDS of Janez Janša and the two basic charges against Čufer were that he backed the Bank of Slovenia plan for a “controlled liquidation” of Probanka and Factor banka, two small sort-of-investment banks which were mainly vehicles for financing ventures of their owners (although Probanka had a small contingent of “ordinary” customers) as well as the fact that he dismissed Andrej Šircelj, an SDS MP, from the board of the yet-to-become-operational Bad Assets Management Company, a.k.a. bad bank.

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Two ministers: one in resignation, the other one not so much. (photo: Aleš Černivec/Delo)

Now, the move-to-oust, or “interpelation” as it is known around here was filed some time ago and it went without saying that the SDS, which was alone in this venture with NSi and SLS watching carefully which way the wind blows, threw at Čufer everything they could get their hands on. Which mostly meant lecturing him at how he should run state finances.

Which is all fine and well, after all this is a democracy of sorts with a relatively well-thought-out system of checks and balances. The same goes for the interpelation instrument. However, what we witnessed yesterday was not so much a case of oppositional oversight as it was a degenerated filibuster where the goal was not to prevent a measure being passed but to drag the proceedings for as long as possible, hoping that somewhere along the way the coalition would drop the ball and fail to produce a majority vote. In fact, this was nothing short of a shit in political tactics. Namely, about a week ago we’ve seen practically the same approach when the parliament debated the 2014 and 2015 budgets. In a multi-day session which culminated in a Thursday all-nighter, the final vote was cast on Friday at 6 in the morning.

The good old days of touch and go

Now, all-night-sessions are not unknown in this part of the world. When shit was hitting the fan while Yugoslavia was disintegrating and the whole Slovenia situation was touch-and-go we used to see them regularly. In fact, one could argue that all-night sessions of the parliament or another high-ranking body were the hallmark of the era. And it seems as if the opposition is trying to bring back the aura of emergency and instability.

Not that there was any lack of urgency to begin with and until the budget was passed, the Bratušek administration sure as hell couldn’t be filed under “stable”. But ever since Janez Janša was toppled he was looking for ways to undermine the current government in any way possible. True, the ruling coalition is perfectly capable to undermine itself (as we’ve seen time and again in the past months) but it would appear there’s some movement in the right direction.

One could argue that Bratušek and Čufer achieved with this budget what Janša and Šušteršič couldn’t. Namely, get at least half a nod from the EU and effectively take threat of the Troika descending off the table at least temporarily. And as demonstrated in the previous post, for Janša the equation is simple: no Troika, no return to power any-time soon. And a derailed budget or a toppled finance minister are not to high a price to pay, apparently. Not to mention inevitable relegation of Slovenia to protectorate status in case the Troika materializes.

Again: Slovenia is not out of the woods yet (not even close) but a hint was given we’re on the right path. And that is not good news for Janša.

It’s about management, stupid

But as someone recently told pengovsky, this country doesn’t have as much of a financial problem as it does have a ~~leadership~~ management problem. Both in government and in business. Which is one of the reasons we find ourselves in the shit we’re in. Case in point being minister of economy and technology Stanko Stepišnik, who was forced to resign yesterday evening over a repeated issue of his tools-manufacturing company Emo Orodjarna applying for and being awarded government grants while he was in office.

Now, there’s a caveat to this: until recently, there was a strict prohibition of companies (co-)owned by public officials applying for tenders with the institutions their owners worked for. I.e.: a company a minister or a member of his family owned (at least partly) could not apply for a grant within his ministry’s purview. Some years ago there was even a complete prohibition for such companies doing any business with any government institution, but that was struck down as unconstitutional. But even this watered-down prohibitive clause was too much for some and was reduced even further by the last Janša administration (albeit at the behest of the SLS) and now stipulates only that people with a conflict of interest should remove themselves from the decision-making process.

And when it transpired that Stepišnik’s company did in fact apply for a government grant at Stepišnik’s ministry, it was all perfectly legal, since Stepišnik did in fact remove himself from the decision-making process. And yet, it failed to dawn on him that simply is not the way things should be done. It took further revelations of his company applying for additional tenders and – this clinched it – apparently falsely stating there are no possible conflicts of interest in one of the tenders for Stanko Stepišnik to finally realise he is in an unsustainable position.

However, since Stepišnik was an MP for Positive Slovenia before assuming ministerial duties, he is bound to return to take his parliamentary seat, making the situation no ~~less~~ more agreeable. Now, arguably, Stepišnik’s resignation is a good omen as it is the second minister in Bratušek administration to resign over a similar conflict of interest (Igor Maher having done so after only 12 days in office) and it shows this government does have a sense of appropriateness. Also, Stepišnik was widely tipped to be let go once PM Bratušek wins the vote of confidence, so there’s no real harm (political or otherwise) in him being replaced.

The necessary vote of confidence

But it does show that – despite the fact some people were mocking Bratušek for tying it to passing of the budget – the recent confidence vote was much more crucial than most people thought. It finally gave her the leg to stand on politically and rallied the coalition around her, at least temporarily. And it appears finance minister Čufer is one of the cornerstones of her political credibility. Which is why she took the somewhat unusual step of the PM addressing the parliament and defend her minister during an interpelation.

This, of course, did not go unnoticed and you can be sure Čufer will find himself the target of much more elaborate attacks and insinuation than just a case of a disgruntled opposition MP who – due to a legal provision, mind you – lost his 6k EUR monthly paycheck in the bad bank which came on top of his 4k monthly MP salary.

Troika Democracy And The EPP

Although there’s shit going on daily that would warrant a well aimed rant in its general direction (as always in this sorry little excuse for a country), pengovsky has a month-old axe to grind. Not surprisingly, this connects to more recent events, including the European People’s Party trying to meddle with the judicial process and demanding Janez Janša be exempt from whatever fallout (political or otherwise) there may be from the Patria Affair. But parallel to the Passion of Ivan – and very much caused by it – for the past two months or so, the political right is producing a steady stream of calls for the Troika to descend upon Slovenia as soon as possible.

20131111_blog
A masterpiece by Matej Avbelj, PhD (source)

Now, that Slovenia is in economic omnishambles is hardly news anymore. But just as they have done for years, part of the political class is still refusing to recognise the reality and is playing hide-and-seek regardless of the cost. You see, back in 2008, when crisis loomed large on the horizon Janez Janša in the last days of his 2004-2008 government famously said that “only an aspirin is needed while the left-wing wants to prescribe an antibiotic to the Slovene economy”.

Well, five years later Slovene economy is in the middle of open-heart surgery while Janez Janša, since conviced of corruption (appeal pending) is saying that we’d all be better off if we just let the Troika handle things from now on. This, of course, has precious little to do with the economy (of which Janša still doesn’t understand didly squat) but rather with that elusive thingie called election victory.

Namely, it goes without saying that Slovenia’s formal appeal for a full bailout would most likely mean yet another early elections, which Janša might actually have a chance of winning (more on the current public sentiment some other time). But to do so, he’d have to paint the current government as a) incompetent and b) illegitimate. In this enterprise he is helped by a plethora of people of various intellectual prowess, not in the least by Matej Avbelj PhD, dean of a small Faculty for State and European Studies which – contrary to its name – mostly offers courses in public administration. A month or so ago Avbelj published a column on a law-oriented portal titled “Troika as a Catalyst for Democracy” (Google translate here).

In the text, Avbelj basically argues (from a supposedly academic point of view) that Slovenia is a state, captured by special interest and dark powers and that elections don’t really count for anything. “Anything” in this case of course translates to “Janša in power”. Because even when Janša was in power and Slovenia witnessed an unprecedented blitz against the media, economy and other sectors, thus paving the way for many a folly we witnessed in the past ten years, the man still claimed Slovenia is run by communists and if he couldn’t find them it just meant he wasn’t looking hard enough. Thus, even when Janša is/was in power, there’s an ongoing conspiracy against him, preventing him from doing the good things.

Well, the reality is there is no conspiracy. Whatever Janša was doing in power wasn’t good on the whole, but he was good at doing it. Sure, this can be said for a couple of other administrations as well, but the difference is that Janša was and still is motivated mostly by perpetuating and increasing his power, politically and otherwise. In this, he often resorted to abusing democratic instruments and occasionally tinkered with undemocratic ones, claiming to have “protected democracy” all along. This goes for calling for Troika as well.

Avbelj, in his texts, assists Janša in this enterprise. The Troika may be many things. but is not a tool of or for democracy. It is comprised of representatives of institutions whose democratic potential ranges from “miniscule” to “none”. The European Commission is a body agreed upon by the EU member states and although approved by the European Parliament, it is hardly subject to a serious checks-and-balances mechanism. The ECB is a monetary, not a representative institution. The IMF doubly so.

Secondly, the way the Troika operates is anything but consensual. In its purest form – as witnessed in Greece time and time again – it is a Godfather-type ensemble which simply dictates terms (how does one say “we’ll make you an offer you can’t refuse” in German?) And even if Slovenia were subject to Troika-light, things would still be a couple of orders of magnitude uglier than they are now.

One of the effects being that it wouldn’t matter a pair of fetid dingo’s kidney who is in power. Even today Slovenia is reportedly (and those reports have not been denied) under daily scrutiny from EC experts (again: unelected!) and right now to a large extend ours is only a pretend economic and political sovereignty. But if the Troika is hell, then Slovenia is purgatory at the moment. We can still hope to get out. With the Troika in the house, not so much.

And so, the logical conclusion is that Janez Janša will stop at nothing to regain power, even if only as a puppet leader with no autonomy whatsoever. Such is the lust – or rather – the need for power. Because Janša as PM stands a much lesser chance of having a verdict against him being upheld than citizen Janša does. This, at least, is the subtext of yesterday’s resolution by the EPP on Slovenia which among other things states that Janša should not be excluded from the political process until final verdict is passed.

In reality, the political star of Janez Janša is fading fast. It is, however, very worrying that a generation of intelectuals has been bread that will happily continue politics done Janša’s way. The only difference being that with him it was a survival tactic, whereas they’ve objectified it into a legitimate political tactic.

EDIT: only minutes ago Janša suggested the government “avoid the Troika by requesting a bank bailout”. QED as far as I’m concerned.

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