EU threatens Slovakia with rule-of-law sanctions

Significance

The EU has warned Slovakia that it could face fines or blocked EU funds over concerns that the government’s judicial reforms, particularly those protecting politicians from prosecution, were incompatible with democratic standards. Two other Visegrad Four (V4) countries, Poland and Hungary, have sparred with the EU for several years over their judicial systems.

Impacts

• Slovakia’s tense socio-political atmosphere will distract the government from stagnating living standards and stalling competitiveness.
• Protracted delays in EU funding will worsen economic prospects further by delaying important structural economic reforms that are under way.
• If Fico ally Pellegrini wins the presidential election it could strengthen Fico’s grip on power and weaken legal checks and balances.