Gala Dinner in Bratislava a Great Success

Friends of Slovakia hosted its second Gala Dinner for 200 guests in Bratislava on November 9 at the Radisson Carlton SAS Hotel. The evening's theme was in celebration of Slovakia's economic progress and its status as an exporter of democracy, and this was reflected in the evening's keynotes speeches and award recipients. Jan Surotchak, FOS Chairman, and Bill Tucker, Vice Chairman, were dinner co-chairs.

Ingrid Aielli, a Slovak-American and member of the FOS Board of Directors, opened the evening with moving remarks about the success she and her husband have found in the U.S. after she left Slovakia in 1989, not knowing whether the country's borders to the west would remain open. Ms. Aielli then praised Slovakia for all the progress it has made since the fall of the communist leadership and shared her hope that Slovaks will take advantage of their new opportunities.

Lord George Robertson, the immediate past secretary general of NATO and former British Minister of Defense, delivered a wonderfully humorous but poignant keynote address about Slovakia's new position in NATO, the EU and how far this new country has come in a mere 13 years. Dressed in a unique tuxedo with tartan trousers (a very proud Scotsman), Lord Robertson, in true British style, peppered his remarks with humorous anecdotes and stories that had the dinner guests laughing throughout his address.

John Surma, President & CEO of U.S. Steel was the second keynoter. He stressed the economic reforms that have been made in Slovakia and how this has led to greater foreign direct investment and job creation. He also emphasized U.S. Steel's continued confidence in Slovakia as a great place to do business. His complete speech is available for download (MS Word 36kB)

Other honored guests at the gala dinner included Prime Minister Mikulas Dzurinda, Chairman of the Slovak National Council Pavol Hrusovsky, Deputy Prime Minister and Minister of Finance Ivan Miklos, Minister of Foreign Affairs Eduard Kukan and former Slovak President and Mrs. Michal Kovac. Rastislav Kacer, Slovak Ambassador to the U.S., Rodolphe "Skip" Vallee, U.S. Ambassador to Slovakia, and Julie Finley, U.S. Permanent Representative to the Organization for Security and Cooperation in Europe also participated in the dinner. Ambassadors Kacer and Finley are members of the FOS Board of Directors and Board of Advisors respectively.

The following members of the FOS Board of Directors and Board of Advisors were also present at the gala dinner: Joe Senko, FOS Treasurer; Julie Slavik, FOS Secretary; former Slovak Ambassadors to the U.S. Martin Butora and Branislav Lichardus; and Juraj Slavik. Friends of Slovakia presented well-deserved awards to these recipients:

• The Honorable Pavol Hrusovsky, Chairman of the Slovak National Council, received the 2005 Politics Award following an introduction by Prime Minister Mikulas Dzurinda.
• The Honorable Eduard Kukan, Minister of Foreign Affairs, received the FOS Diplomacy Award.
• The 2005 Economics Award was presented to Deputy Prime Minister and Minister of Finance Ivan Miklos.
• The 2005 Business Award was presented to Robert Simoncic, General Manager of Microsoft Slovakia and President of the Board of Directors of the American Chamber of Commerce in Slovakia.
• The 2005 Culture and Sports Award was presented to Peter Bondra, a Slovak professional hockey player who plays in the U.S. National Hockey League. Unfortunately Mr. Bondra could not accept in person.His award was accepted by Jan Filc on his behalf.

The gala dinner was planned with the able assistance of an organizing committee; Russell Preston of Boeing International Corporation, Milan Filo of Eco-Invest, a.s., and Robert Simoncic of Microsoft Slovakia were Dinner Organizing Committee co-chairs.

The gala dinner received a significant amount of coverage in the Slovak press with articles in the Slovak Spectator, SME and other publications. In fact, immediately preceding the dinner Slovak television conducted a short interview with both Lord Robertson and Bill Tucker.

A "Thank You" from the 2005 FOS Slovak Scholar Martin Mikulas

"I would like to express my thanks to Friends of Slovakia for opening the doors that led to the most fabulous summer of my life – summer 2005 in Washington, DC at one of the world's best universities. This was a precious gift for which I am so thankful words can hardly tell. The demanding classes at Georgetown, the internship at the International Foundation for Election Systems together with the intensive extracurricular program left me only a few hours of free time a week."

Mr. Mikulas savored the excitement of meeting Pres. Bush and of attending Federal Reserve and IMF briefings. He even played on the foundation's softball team. He wrote with affection of the many friends he had made, both American and foreign – friends he hopes to keep throughout his life.

Mr. Mikulas is now in a Petroleum Economics and Management program in Paris on a scholarship from Naftagas, a Slovak oil and gas company.

Ambassador Palous Gives Czech & Slovak Freedom Lecture

On the 16th Anniversary of the Velvet Revolution, Ambassador Martin Palous, before departing Washington to become Czech UN Ambassador, gave the 6th Annual Czech and Slovak Freedom Lecture sponsored by Friends of Slovakia and American Friends of the Czech Republic. He spoke eloquently to an audience of members of FoS and AFoCR at the Woodrow Wilson International Center for Scholars on the "Czech-U.S. Relationship at the Beginning of the 21st Century". Ambassador Kacer introduced his Czech colleague. AFoCR President Mike Rokos presented Martin Palous with a certificate of appreciation from AFoCR and FoS, and FoS Founding Chairman Ted Russell gave him the FoS Medal of Honor.

Ambassador Palous discussed the impact of the Velvet Revolution in permitting the Czech and Slovaks to "rejoin the West." He paid tribute to the role of the United States which "throughout the 20th Century ... stood for the defense of the very idea of freedom and open society." He termed the U.S. a key strategic ally and said that the U.S. – Czech relationship is "stronger than ever." However, he stated that to keep this relationship strong, the two countries have to recognize what they have in common as well as the historical, cultural and political bases of eventual differences.

Commenting on friction in U.S. – European relations, Ambassador Palous asked "is not the anti-Americanism so fashionable today in many parts of Europe, or the contempt and indifference for anything European here in the United States, ... just a mark of our spiritual laziness and of our inability or even willingness to think and act as true heirs of our Western civilization? Is not such an attitude just a replacement for real political thought with sophistry and rhetoric that ... betrays the best of our common democratic traditions."

Ambassador Palous then turned to practical political questions concerning the U.S. – Czech relationship. He urged that the Czech Republic secure its national interests in the traditions of "our Masarykian/Wilsonian idealism that makes us an active player in today's world struggle for democracy." He called for a "pro-American Europe and a pro-European United States." In closing, Ambassador Palous urged that "we need to be aware of our common roots in one European/Western civilization ... understanding and capable of protecting by (our) words and concerted actions its legacies."

Slovakia in 2005

by Sharon Fisher

The political situation in Slovakia was somewhat shaky in 2005, but the country continued to record economic and foreign policy success. Prime Minister Mikulas Dzurinda had been running a minority government since the end of 2003 when splits emerged in two of the four parties in the ruling coalition: Dzurinda's Slovak Democratic and Christian Union (SDKU) and Pavol Rusko's New Citizen's Alliance (ANO). However, the cabinet had surprisingly few problems pushing through a number of key reforms over the past several years, thanks to the support of political independents, including some deputies who had quit the SDKU and ANO.

Most of the political tensions emerging in 2005 centered on ANO. In May, personal conflicts between the top two officials at the Education Ministry — Minister Martin Fronc of the Christian Democratic Movement (KDH) and State Secretary Frantisek Toth of ANO — contributed to the failure of an education reform bill. ANO rejected the legislation, marking the first time the government was disunited over an important reform matter. Later that month, Toth took over the post of culture minister, replacing ANO representative Rudolf Chmel.

In late summer, the government experienced its worst crisis since taking office in 2002, following Rusko's dismissal from the post of Minister of Economics based on a financial scandal. After failing to heed Dzurinda's call to resign voluntarily, Rusko was fired on August 24, and he subsequently withdrew ANO from the ruling coalition. Nonetheless, a majority of ANO parliamentary deputies, led by former journalist Lubomir Lintner, continued to support Dzurinda's cabinet and forged an agreement with the three remaining ruling coalition partners: the SDKU, KDH, and the Party of the Hungarian Coalition (SMK). Still, a crisis ensued in mid-September, when the opposition refused to attend the scheduled session of parliament. With some independents initially reluctant to support the government, the necessary quorum of 76 deputies in the 150-member assembly was not reached on several attempts, contributing to speculation that early parliamentary elections would be held. After more than a week of delay, the parliament finally started operating on September 21, with 77 deputies present. That followed the surprising shift of two deputies from the opposition Movement for a Democratic Slovakia (HZDS) to Lintner's group, accompanied by allegations that they had been "bought."

Following Rusko's exit, Lintner's group was able to keep ANO's two remaining ministers in office and to name a replacement to head the Economy Ministry, with Jirko Malcharek taking that post in October. That same month, Dzurinda backed the resignation of Minister of Labour and Social Affairs Ludovit Kanik after he admitted to questionable financial dealings. Kanik was replaced by the respected sociologist Iveta Radicova, who became the first woman in the Dzurinda cabinet.

With most of the key reforms already in place, the most important piece of legislation requiring approval following the government crisis was the 2006 state budget, which served as a key test of the ruling coalition's sustainability. On December 13 the budget was approved with surprising ease, gaining the backing of 79 deputies in the parliament.

Regional elections in November offered some indication of the level of support for the various parties. As in the case of the June 2004 elections to the European Parliament, elections to the regional assemblies were characterized by very low turnout and surprisingly good results for the ruling parties. In the second-round runoff in December to elect regional chairmen, however, the opposition managed to win all eight posts, with just around 11% of the electorate participating.

On the economic front, Slovakia continued to record rapid GDP growth in 2005, based on strengthening gross fixed investment and household demand. Private consumption was boosted by a reduction in inflation, a strong recovery of real wages, and declining unemployment rates. The country appeared to be in good shape to meet its goal of adopting the euro by 2009. In fact, Slovakia's accession to the ERM-II waiting room in late November put the country well ahead of its Central European neighbors in regard to euro zone membership.

In the foreign policy arena, Slovakia hosted a summit between U.S. President George Bush and his Russian counterpart Vladimir Putin in February, marking the first visit of a sitting U.S. president to Slovakia. In May, Slovakia approved the European Constitution through a parliamentary vote, making it the seventh European Union member state to ratify the document. In October, Slovakia was elected for the first time ever as a non-permanent member of the United Nations Security Council, with the term scheduled to begin in January 2006.

Foreign Minister Kukan Speaks to Washington Audience

Friends of Slovakia co-sponsored with the Woodrow Wilson Center October 28 a Director's Forum featuring Slovak Foreign Minister Eduard Kukan. Kukan was in Washington for meetings with Secretary Rice, NSC Adviser Hadley, Senator Lugar and other officials. He spoke on "Slovakia in the New European Union" to an audience including Friends of Slovakia Board members Jan Surotchak, Ingrid Aielli, Scott Salmon, Sharon Fisher, Tom Skladony and Ambassador Kacer, academics, members of the diplomatic corps and press, businessmen and representatives from the State Department and U.S. Congressional staff.

Kukan was warmly greeted by Woodrow Wilson Center Director Lee Hamilton and Deputy Director Mike Van Dusen. His hour-long presentation was followed by a reception that gave him an opportunity to meet with old friends. Amb. Ted Russell introduced the Foreign Minister, pointing out that under his foreign policy leadership Slovakia had moved from an "importer" to an "exporter" of democracy and stability in the region and further afield through its peacekeeping missions in Iraq, Afghanistan, Cyprus, the Golan Heights and Kosovo among others. A majority of the questions to Foreign Minister Kukan concerned Slovakia's role as an EU and NATO member in stabilization efforts in Kosovo, the Balkans and Eastern Europe as well as joint Czech-Slovak efforts to heighten EU attention to human rights issues in Cuba. The focus of these questions and Kukan's detailed responses highlighted Slovakia's transition since 1998 from a country of concern to a respected international actor in the Euro-Atlantic community.

EXCERPTS FROM JOHN SURMA'S SPEECH AT DINNER

"From the caliber of our workforce in Kosice to cooperative relationships with local and national leaders, I report that Slovakia is a great place to do business. Since acquiring the Kosice steelworks, U.S. Steel has significantly expanded the facilities and invested in new technologies and capabilities. Currently, our engineers and contractors in Kosice are building a $160 million hot dip galvanizing facility that will have the capability of processing approximately 350,000 metric tons of steel to serve the growing demand for high quality coated steels in the Central European automotive and construction industries. This state-of-the-art facility will open in early 2007."

Mr. Surma outlined the growth of foreign investment in Slovakia. "In 2000, there were only a handful of foreign firms...but by the end of 2005, about 40 new projects, worth more than 2 billion Euro, will be approved...[and] create approximately 20,000 new jobs." "The far-reaching reform agenda pursued by the government of Prime Minister Dzurinda is credited by many with stimulating the interest of the foreign investment community. Slovakia's pursuit of meaningful reform in the areas of tax, welfare, pensions, healthcare, the labor market, and the legal system has captured Europe's attention."

Mr. Surma then listed four challenges to public policy that merit continued attention: a permanent solution to the nation's unemployment, the right combination of regional policies to enable all of Slovakia to participate in the country's economic awakening, ensuring of fair and equal treatment from the EU while pursuing every advantage membership offers, and finally, the ongoing challenge to eliminate systemic corruption from all spheres of Slovak life.

"Slovakia has embarked on a course of political and economic development that is fundamentally right. It is therefore my sincere belief that Slovakia will ultimately and permanently succeed."

The full text can be found at www.friendsofslovakia.org.

Slovak and US Defense Reps Have DC Meeting

Ambassador Rostislav Kacer and Defense Attache Miroslav Giertli hosted a senior Slovak Government and defense industry delegation at the Embassy on November 14. The intent was to show Slovak industry capability to an audience of US defense company representatives who might see opportunity for industrial cooperation. The day began with presentations from Ambassador Kacer, Martin Fedor, State Secretary of the Ministry of Defense, Eva Simkova, State Secretary of the Ministry of Economy, and Ludovit Cernak, President of the Slovak Defense Industry Association. Senior representatives from the Departments of State, Commerce and Defense followed with guidance on US arms control, export policy, and industrial cooperation. With these presentations as backdrop, each of the 15 Slovak defense companies also provided "capability briefings" to the audience of approximately 100 with opportunity for networking and an Embassy reception in the evening concluding the day's activity.

The following day, Friends of Slovakia and representatives of the US defense industry hosted a lunch for the Slovak Government representatives at Teatro Goldoni Restaurant. Boeing, Northrop Grumman and SWEET Analysis Services were among the sponsors with Raytheon as senior sponsor.

The event was well-received by all participants and opened new opportunities for Friends of Slovakia to support the bilateral relationship. New members were also recruited. Such events continue to emphasize the importance of FOS as a vehicle for promoting the interests of Slovakia--the industrial relationship as well as political, cultural and military.