Avoiding Risk to EU Funds, Slovakia Amends Criminal Overhaul

(Bloomberg) -- Slovakia amended an overhaul to its criminal code, yielding to pressure from the European Commission to avoid a clash that would put crucial funding at risk.

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Lawmakers in Bratislava increased penalties for the misuse of European Union funds on Tuesday, following months of negotiations with Brussels. The original legislation drew scrutiny from the EU’s executive arm, which warned that the changes heightened the risk of inadequate protection for EU financial interests.

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The new criminal code, along with the government’s decision to halt military aid to Ukraine and wrest control over public media, has polarized Slovakia since Prime Minister Robert Fico’s return to power last October.

Those tensions intensified in May when an assailant shot the premier four times in an assassination attempt. Fico has blamed the opposition and anti-government media for the radicalization of the attacker.

The prime minister has denied that his government went too far in overhauling the criminal code — and has pointed the finger at the opposition, saying they lobbied in Brussels for the suspension of EU funds.

“The opposition sought to financially damage Slovakia,” Fico said in a video statement on Monday. “This dirty work left traces in Brussels — and therefore we must urgently strengthen the protection of the European Union’s interests in the law.”

European funds are crucial for Slovakia, financing more than half of all public investments in the eastern EU member of 5.4 million.

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--With assistance from Deana Kjuka.

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