EU prepares to punish Slovakia by freezing billions of euros – Bloomberg

The European Commission is working on a proposal to punish Slovakia for undermining democratic norms, which could lead to the suspension of funds for Bratislava. Bloomberg reported this, citing its own sources.

The European Commission has prepared to launch a procedure to bring Bratislava to justice in connection with the decision of Prime Minister Robert Fico to abolish the special prosecutor’s office that oversaw some corruption cases involving EU funds.

The process is still in its early stages and requires the approval of European Commission President Ursula von der Leyen. 

EU funds finance about 80% of all public investments in Slovakia. Any potential funding issues could be a serious blow to this EU member state and the eurozone, which is already facing problems due to an excessive public finance deficit.

According to the sources, who spoke on condition of anonymity, one suggestion is for the European Commission to use its so-called conditionality mechanism, which allows the EU to freeze funding when it sees its money at risk. 

As a result, the EU could withhold part of the €12.8 billion in cohesion funds allocated to Slovakia in the EU budget. Slovakia should receive this amount for the period 2021-2027.

According to one of the interlocutors, the European Commission is also investigating the possibility of returning all or part of the €2.7 billion in Covid grants that Slovakia received as part of the EU’s spending to combat the pandemic. The creation of a special prosecutor’s office was a condition for the disbursement of these funds.

Since Fico returned to power in October, he has been scrutinized by Brussels as he decided to revise the criminal code and dismantle the special prosecutor’s office, which had been handling high-profile corruption cases, including among his allies.

In May, Fico was wounded in an assassination attempt. When he recovered, he blamed the attack on the hostile atmosphere created by the press and opposition. He has since reformed the state media, bringing broadcasters under government control.