Investors are taking the changes to Bratislava’s criminal legislation that was approved last week seriously, as Scope Ratings – a European credit rating agency – downgraded the country’s credit rating from A+ to A, citing the risk of losing access to EU funds as one of the reasons, Denník N reported.

According to Scope Ratings, Slovakia’s long-term rating downgrade is underpinned by “the deteriorating fiscal position due to high deficits and uncertain consolidation prospects” and challenges to the medium-term macroeconomic outlook.

Those are “related to the disbursement of EU funds, the moderate growth outlook of EU trade partners, the transition of the automotive manufacturing sector to electric vehicles, and an incomplete transition from Russian energy,” the agency wrote in its report.

The Scope then specifically mentioned Prime Minister Robert Fico’s government’s criminal code reform, which was given the green light by the Slovak parliament last week. The report says that the reform, if implemented, could “hinder the timely disbursement of EU Cohesion and Recovery and Resilience Facility money”.

The reform dissolves the special anti-corruption prosecutor’s office, weakens protection for whistleblowers and reduces penalties and statutes of limitations for serious crimes such as murder, rape and corruption.

The law still needs to be signed or vetoed by the president.

The European Commission, the European Public Prosecutor’s Office (EPPO) and the European Parliament have all warned against the changes. The leading Slovak opposition party Progressive Slovakia (PS) also revealed that the Commission has already sent two warning letters to Fico’s government.

According to PS, Brussels warned Slovakia that it could lose access to EU funds because adopting the criminal code reform allegedly violates European law. The government denied the allegations, while the Commission said the letters could not be published due to ongoing negotiations with Slovak representatives.

The changes have not gone unnoticed by citizens, who continue to turn out in their tens of thousands for weekly anti-government protests led by the opposition.

(Natália Silenská | Euractiv.sk)

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