State of the Republic Address Delivered by the President of the Slovak Republic before the National Council of the Slovak Republic, 22. 6. 2005

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Dear Speaker of the National Council of the Slovak Republic,
Dear Members of Parliament,
Dear Members of Cabinet,
Dear Excellencies,
Dear guests!

Exercising the right afforded to me by the Constitution of the Slovak Republic, I present to you and to the people my Report on the State of Republic, where I wish to point to those features that characterize the present state of our society and, at the same time, outline certain views and ways to go forward.
In my views, opinions and statements, I rely not only on analyses prepared by experts, but also on the things that I learned from the many letters written by the people, things that were brought to my attention in meetings with citizens, Members of Parliament, representatives of academic institutions and councillors serving on municipal councils across Slovakia. I therefore hope that you will take my views as recommendations and prompts for reflection.
In many ways, I endorse the activities of the Government and the National Council of the Slovak Republic. However, that is not to say that we are in perfect agreement on all the issues. Besides being impossible, it would be far from helpful.
Right at the outset, I want to say that, so far, our achievements have been the result of the coming together of many factors in the life of our society, in particular the work of the Members of Parliament, members of the cabinet, bodies of regional and local self-governments, professional associations, civic associations, foundations, businesses, businesspersons and all working people. My word of thanks goes out to all those who help advance our common cause of giving our people a better life.
We should always look at ourselves before looking at others. Therefore I want to highlight that my main purpose and strategy as President are determined by the Constitution of the Slovak Republic. My priority has always been to honour the spirit of the Constitution as well as the underlying constitutional principles, which can strongly be felt in all my dealings with the legislative, executive and self-regulatory branches as well as the people and in respect of foreign policy.
With these words spoken, you might surmise that everything is set and that there is nothing more to talk about. However, that is not the case. There is still a need to tell the truth about the life and the difficulties of the people, about ways out of these difficult situations and about our outlook.
In anticipation of my first address in the Parliament – an environment that I am well acquainted with – several political leaders and Members of Parliament were heard to have said that they primarily expect the President to address the current state of affairs and discuss whether Slovakia is on the right track. I will answer in brief: The Slovakia that I represent has already established itself in the international democratic community as a country earning more and more recognition for its policy. Therefore, I may safely say that Slovakia is indeed on the right track, which is encouraging.

Distinguished Parliament!
When I took office as President, I understood that, in actuality, Slovakia had already won its most prestigious and difficult battle since it regained statehood. We were received as fully-fledged members of NATO and the EU, which was a priority dominating our foreign policy and diplomacy for many years.
Our foreign-policy orientation is positive and irreversible. We hold all the tools we need to forge new contacts, enter into cooperation or bring our partners on board to look for solutions to problems that lie outside the area of the organizations that we are members in.
To this end, I want to continue helping our diplomacy, which I have been doing since my first days in office as President, when the fast pace of international developments and events drew me right into the midst of important decision-making processes. Here, I want to mention last year’s UN General Assembly attended for the first time by a Slovak President or last year’s NATO Summit in Istanbul to which I headed the Slovak delegation, participating for the first time as fully fledged members of NATO. And, in all modesty, we I also have to mention the President’s hosting role during the US-Russian Presidential Summit. The Slovak Republic hosted the presidents of both super-powers during their historically first visit to our country. It is not by chance that all these events of extraordinary importance to our foreign policy were accompanied by words of respect and recognition for Slovakia’s success story.
I also want to touch upon my trip to the Holy See last week. I was the third president to be received by the Holy Father. I think that bears witness to the wide-reaching acceptance enjoyed by Slovakia. In our most cordial discussion, the Holy Father conveyed to me his appreciation for the way the position of the church is enshrined in the Slovak Constitution and he spoke highly of the good relations between the State and the church.
On that occasion, I also paid a visit to the headquarters of the Order of Malta, which also conducts its charitable activities in Slovakia.
There are major opportunities in stock for the Slovak diplomacy and foreign policy in the upcoming period, as we are likely to take the non-permanent seat on the UN Security Council for the next two years. This will be, as I hope, not only the time to implement the anticipated reform, but also to stabilize the situation and strengthen security in the hot spots around the globe.
If the international democratic community is to achieve better security and stability around the globe, including the current hot spots, then the members of this community must, as a bare minimum, come to an agreement on putting to use those instruments that have already proven their worth. This is the line of reasoning that the Slovak Republic has been using in the international arena, never forgetting about our concern for the protection of the values of human dignity, freedom, democracy, rule of law and international law.
In this context, I wish to recall that the personal priorities of my presidency, which I outlined in my inaugural – namely the security, prosperity and identity of Slovakia – are fully aligned not only with the pro-integration aspirations that our country harboured in the past, but also with our current position and possibilities inside the international arena.
Our citizens do in fact recognize both the political and the practical economic benefits of our membership in NATO and the European Union. These benefits become even clearer when we ask ourselves what our position and outlook for security and prosperity might have been if Slovakia remained outside these organizations. This is the light in which we must see our military engagement in Iraq, even in the aftermath of the recent terrorist attack outside the building of the Slovak Embassy. The Slovak troops deployed to Iraq are on a mission which is fully aligned with the security interests of the Slovak Republic. An early pullout would do more harm than good in respect of both our foreign-policy interests and the stability in Iraq and the Middle East.
Going forward, it is necessary for us to respect and honour the applicable international treaties and agreements.
I also wish to use this opportunity to convey to the National Council of the Slovak Republic my appreciation for its constructive approach to the recent ratification of the EU Constitutional Treaty. You are probably aware that I myself belong to the ranks of those who, even if in more measured terms, have criticized this document because it failed to leave enough elbow room for the National Parliaments to be involved in the EU decision-making pipeline. Today, after France and the Netherlands voted „No“ in their respective referenda held in respect of the Treaty establishing a Constitution for Europe and after the failed attempt to find an agreement on the 2007-2013 Financial Perspective at the EU Summit last week, it is necessary to analyze the current situation and look for a way out as well as for a course of action that will not endanger the integration process. Unfortunately, Slovakia has no magic bullet for the crisis that the EU spawned, however allow me just one brief comment on this situation. In our not-so-distant past, in the early 1980’s, Europe was still dangerously close to a nuclear conflict. The importance of the few billion Euros which are the crux of the argument among European leaders seems to fade when compared to the cost of the bipolar arrangement that once haunted Europe. Therefore I fully endorse the new Member States in their step to accept less funding from the EU funds and I respectfully suggest that the political leaders of the more affluent countries take a similar perspective as we, the newcomers to the EU.
Dear Members of Parliament!
If I say that the Slovak Republic has come of age and that its diplomacy is more mature, then much of the credit for this progress goes to the support of the public for the international ambitions of our country. We should all do our share in making sure that Slovakia remains a reliable, transparent and respected partner both inside the organizations that we belong to and also vis-à-vis other countries and international organizations that lie within the range of our interest for cooperation.
Also, there is much work ahead of us in the ongoing reform of the Armed Forces. Changing the character of the military in line with the 2015 Model, bringing our Armed Forces on par with NATO requirements as well as building the necessary capabilities to be committed to the European Union – all that calls for several years of hard work. In my capacity as the Commander-in-Chief of the Armed Forces of the Slovak Republic, I have a keen interest in making sure that our Armed Forces become a fully-fledged, equal and respected partner inside the military machinery of the NATO and EU Member States.
By the same token, I wish to use this opportunity to thank all the brave men and women in the Slovak military for their dedicated and professional service on Slovakia’s foreign missions and I want to pay homage to those who put their lives in harm’s way and made the greatest of all sacrifices.

Dear Members of Parliament!
After 1998, but primarily after 2002, Slovakia started to undergo major reforms in many areas. The implementation of these reforms has a considerable impact on the workings of society and the social fabric as such.
The Slovak economy has seen a dynamic upswing since the independent Slovak state came into existence in 1993. Of course, there were issues along the way.
All in all, the road infrastructure development was a positive exercise for Slovakia, although we did take on a lot of debt. The completion of the motorway and expressway network constitutes a fundamental prerequisite for bringing the underdeveloped regions of Slovakia on par with the more developed ones in an effort to make them attractive to investors.
Gradually, the benefits of our investment into infrastructure development are starting to show. While in 2002 and 2003, Slovakia attracted mainly the big names in the car-making industry, such as the PSA project in Trnava or the Kia Motors project outside Žilina, today, there are more and more medium-sized companies that create the necessary backbone structure for the car-making operations.
The outlook for the next few years is largely positive, the reason being the careful logistical planning in the automotive industry, which relies heavily on a well-functioning supplier and vendor network. According to our estimates, the benefits of Slovakia’s becoming a car-making hub will outweigh the downsides. I expect that the car factories will help restructuring and revitalizing the key sectors of our industry. Their high quality standards will in turn allow Slovak businesses to also satisfy the requirements of other customers.
Despite being touted by foreign press as an investment haven, Slovakia fails to keep abreast with the Czech Republic, Hungary and Poland in terms of the inward investment by foreign businesses and banks. So far, there were only declarations and therefore Slovakia still has to wait on the better part of its foreign investment to arrive.
Also, we have to quite openly admit that foreign investors are primarily drawn to Slovakia because of low labour costs, which are much more attractive than low taxes.
The 2010 National Competitiveness Strategy, or the so-called National Lisbon Strategy was adopted. It contains a host of well-intentioned projects, objectives and resolutions. However, without proper funding, it will remain nothing but a theoretical repository full of good solutions.
Today, as a result of globalization, there is no way around major changes not only here, but also on a global scale. Social, political and economic relations and processes transgress the borders of individual states and regions, but not without having a major impact on the lives of the people that live there. Local events are to a large extent driven by developments unfolding far away and vice versa. Globalization creates a new type of economy, production and commerce, which in turn result in a major change in the way people work and live.
Globalization also affects the environment. Each country does its share in contributing to environmental decay. Global climatic changes, the pollution of air, water and soil – these are clear and present threats to the quality of our lives, health and prosperity. We have to realize before it’s too late that natural resources are scarce, that the environment is not indestructible and that the health and lives of people are at stake.
In the years to come, the Slovak economy will not only have to come to grips with the consequences of globalization, but it will also have to pick up the pace on the transition to information society, digital and knowledge-based economy, e-commerce and e-government in order to find ways of sustainable development.
The standard of living among people is more and more hinged on what they contribute to the global economy, on their qualification and knowledge. An economy based on knowledge and regard for environmental and social aspects is bound to advance and thrive. Therefore, it is necessary for us to invest in human capital. This means education, research, development, deployment of advanced technologies, investment and commercial institutions. This is the road we must walk and we have to be prepared.
Slovakia’s most pressing social problem is unemployment and the trend of its development. The rate of unemployment is still high. To a large extent, the decrease seen throughout last year and during this year failed to result in job seekers actually finding employment.
Another outstanding issue is the growing percentage of long-term unemployment. In addition, significant disparities among the regions still prevail. Unemployment ranges from around 6% in Bratislava all the way to around 30% in some regions in the South, East and North of Slovakia. These statements are not meant to go against the results of statistical surveys which show that unemployment is on a downward trend. It is undeniable that we see first glimmers of success in dealing with the issue employment.
It is to the small and medium-sized enterprises that assistance should be channelled not only because they are crucial for the sound development of our economy in terms of GDP growth, but also because they are instrumental to solving the issue of unemployment and sustaining social stability.
So far, regional disparity has been the most obvious negative aspect of our economic development. A higher standard of living in Bratislava stands in stark contrast to the remaining parts of our country, namely certain areas in the South, East and North of Slovakia. Some Slovak regions have been regions of poverty for extended periods of time and they are beyond the point of being able to help them.
Unemployment apart, regional disparities are certainly among the most pressing socio-economic problems that Slovakia is faced with.
Gradually, the State delegated to the regional and local self-governments a whole range of powers, in particular in education, health care, transport and environmental protection. At the same time (which, in my mind, is late), the financial decentralization process was launched.
The principles of administrative and fiscal decentralization are correct, however the pitfall of this reform is centred around the following two sets of issues.
The powers delegated to the regional and local self-governments came with a large intrinsic debt that accumulated over the last 15 years as a result of the State’s failure to upgrade and maintain schools and health care facilities and because there were already substantial amounts outstanding in respect of road maintenance and the environment. This debt was transferred to the self-governments along with the related competencies. It is true that the Government paid part of the debt to the regional and local self-governments. Nevertheless, 60% of the debt still weighs heavily on the shoulders of the towns and villages.

The only way to achieve a balanced budget in the towns and cities has to do with income and real estate taxes. Unfortunately, this would have quite an impact on the business sector and on the people.
The second problem with this reform remains the size of municipalities in Slovakia. The better part of the Slovak population lives in municipalities with less than 2,000 citizens. However, according to the parameters of the public administration reform, only municipalities with 5000-plus citizens stand a fair chance of surviving.
Right now it is to early to measure at the grassroots the real positive or negative impacts of administrative and fiscal decentralization. The results still remain to be seen.

Dear Members of Parliament,
The foregoing shows that the development in Slovakia is dynamic, yet contrast ridden.
The changes after 1989 set things in motion in terms of pay differentiation, which used to be rigid beyond compare.
Turning to the current income and pay differentiation, it is disquieting to see that, as a result of the transition process, there are differences in income and pay which, in the eye of the public, are neither legitimate nor substantiated.
The cutbacks on welfare benefits coupled with a relatively sluggish growth in wages and even a decrease in real wages in 2002 and 2003 resulted in the widening of the social and economic gaps. Around 15% of the Slovak families live on welfare and around 30% of households live on low income. This not only irreconcilable with the very principles of a socially-oriented market economy structure, but may also cause the inter-generation solidarity to wear thin.
The strong differentiation of income confronts the reform strategy with a new obstacle: if the overwhelming majority of the population consists of low income earners, it will prove difficult to have people contribute more to the pension and health insurance schemes as well as to the spending related to the education of children.
It is understandable that is was necessary to reduce the vulnerability of the social security system, in particular by doing away with benefit payments to non-eligible beneficiaries.
If the eligibility criteria for welfare benefits were made more stringent in order to make people look for jobs, however we have to realize that there are regions where work is scarce and even the number of jobs for activation work is limited. People who have fallen into the poverty trap have no way to pull themselves out. Quite logically, this situation gives tailwind to the grey economy and results in a stronger cross-border migration of job seekers.
A considerable part of the Slovak population lives at the subsistence level, just trying to make ends meet. In my view, the social acceptability of the individual reforms is approaching critical levels.
Some experts would have you believe that the implementation of the reforms is acceptable and that, taken by itself, it already leads to an improvement of the situation. Such over-simplifications fail to account for the real differences among individual regions. In other words, a positive statistical average is in fact only relevant for a handful of large urban areas.
The most significant consequence of the demographic development is the change in the age structure of the population, i.e. the aging of the population.
As one of the most important social problems of the 21st century, the ageing of the population has a strong impact on the economy and on the health care and social security system. Therefore, in this context, the pension reform must be seen as a critical reform.
By recalibrating the pay-as-you-go pillar and putting a stronger emphasis on the merit principle, pensions were made more attractive. On the other hand, the people are calling our attention to the fact that many have suffered social injustice as a result of the gaping differences in pensions that retirees receive depending on whether they retired before for after the transformation of the first pillar was launched.
I therefore ask the following question – what kind of reform is this when after one year of its launch, we realize that we don’t have the money and that we have to make major adjustments. Is this the consequence of an attempt at a quick-win solution? Or maybe just lack of understanding coupled with an inaccurate assessment of the state of affairs?
And another issue which I have no intention of analysing here – the problems, purpose and functionality of the Social Insurance Agency in the implementation of this reform.
So far, no solution was found and no compensation was introduced for more than 800 thousand retirees who have been receiving pensions and who eagerly await a solution. The most recent step taken by the National Council in this regard was the introduction of a differentiated upward adjustment of pensions across individual pension brackets in an attempt to partially compensate the existing mistakes and disproportions. However, this solution falls short of addressing the core of the situation. Systemic mistakes cannot be undone by introducing new elements of injustice.
Slovakia introduced a new pension system for which it set aside SKK 65 billion from the privatization of SPP, however, the upcoming 20 years will still create a financial shortfall of several hundreds of billions of Slovak koruna. Therefore, we may even expect our efforts aimed at the speedy introduction of the Euro currency to stumble upon a serious problem after 2009, namely our ability to comply with the Maastricht criteria while reducing the deficit of the Social Insurance Agency. These reflections are of great importance as they may result in a dramatic reassessment of the way we look at inter-generation solidarity.

Distinguished Parliament!
Another area crucial to the life, health and future of our people is health care and health care standards. This is the area where the emphasis is being placed on generating among the people a sense of shared responsibility for health. Our citizens expect the health care reform to introduce more human dignity, equality, solidarity, but also better professional quality, ethics and care. However, the reality is often totally different. The reform is presented to the people as a purely economic problem, a problem of lack of money, whereby there is almost no mention of efforts aimed at improving the health of the people.
I have to ask again – to what extent is an individual capable of caring for his or her own health and being responsible for his or her own health? Where is the line between the personal responsibility of a citizen and the State’s responsibility for his or her health, the line between the capability of a citizen to take care of him or her self and the willingness of the State to afford the citizen certain social safeguards. Also, the State’s role is to protect the weak, helpless and poor ones.
We are not yet ready for liberalization and for a market environment in health care. By saying this, I refer to the breadth and pace of the privatization. Health is the ultimate value. We must not reduce it to a market commodity. With this in mind, we have to proceed with more caution than in other areas. The purpose of the health care reform should be not only an economically balanced system, but also better health care and ultimately better health for the people and for future generations. At the end of the day, the responsibility for health care lies with the State.
It is ill-suited to refer to a sick patient as a client – a high-grade, medium-grade or low-grade client. How will an indigent patient be treated? Ultimately, the State cannot ask medical doctors to go against the Hippocratic Oath.
The same goes for education. Although in 2004, the priority of the Ministry of Education was to put together an administrative reform of the education and school system, there were no bills passed as yet. The current situation in regional education clearly calls for a deep and wide-reaching reorganization of the curricula as well as for a change in the teaching and examination methods used at primary and secondary schools. In the regions, the situation in primary and secondary education is deteriorating. There is a growing backlog of problems. There are cutbacks on youth clubs, leisure centres and dining facilities. Education oriented to citizenship, patriotism and the general values of ethics has also become weaker.
Education level surveys have shown that the high standard of our education that we were so proud of is nothing but an urban myth which belongs to the past. This means, we have a problem which calls for an urgent solution that lives up to the challenges of our time.
Here, the primary concern should be the healthy physical and mental development of our youth and of the entire population as such. At our schools, the positive approach to physical education or physical culture is fading. From a broader perspective, we also have to think about the overall fitness of our population and, in particular, the fitness of the male population which is likely to go down once the conscript service is phased out. We have to look for ways on the part of the State to initiate and create conditions for the physical activities of the population in order to make sure that recreational sporting becomes part of the lifestyle of our citizens. This is a trend that requires our clear support.
For quite some time, both professionals and the public at large have concerned themselves with the Government’s promise to introduce tuition fees at universities. Since 2003, the Ministry of Education has been unable to make good on this promise. Personally, I don’t think that this is the right way to improve the quality of education at our universities.
A university cannot thrive without a good scientific backbone structure. Therefore, we have to take steps that will fully integrate our scientific community into the Pan-European context. Slovakia’s priorities in science should be well-aligned with the priorities of the EU, which include categories such as health, nutrition, nanotechnology, biotechnology, IT, telecommunications, material and production technologies, energy and the environment. Particular attention must be paid to the support of research in humanities, in particular history, law and political sciences. These steps are all the more important because the Slovak science has been underfinanced for an extensive period of time and because in the recent 6-7 years there has been a considerable decrease in support for science and research. Let us hope that the situation will be reversed by the new Organization of State Support for Research and Development Act as well as by the introduction of a more efficient and flexible grant scheme. In these new circumstances, it is necessary for universities to be more open and forthcoming towards the business sector and the foreign investors coming to Slovakia.

Dear Members of Parliament,
the social benefits of the 15 years of our economic transition are setting in after a long delay. The pessimism among the population stems from the discord between expectations and reality. Irrespective of the standard macroeconomic indicators, people tend to look at economic processes through the lens of their situation in everyday life.
Answering the following questions may help developing an understanding for the social situation and moods of certain groups of the population:
What do people think of life in Slovakia when they live in regions with no jobs or in so-called valleys of famine?
How do they feel about the decentralization of the local and regional state administration, which, unlike before, forces them to travel to a different place every time they have some official business to take care of?
What is going on in the minds of the disabled and their relatives when their welfare benefits are cut or when an insensitive administrative standard is being used to re-evaluate the degree of their disability, while, at the same time, prices and fees rise across the board?
How do citizens respond to the cutbacks on train and bus schedules, especially if the use of an own car is so expensive or if they cannot afford to buy one.
These are all pressing questions, which we must not only answer, but also address.
Let me stress again that so far the reforms have not contributed towards a narrowing of the regional disparities. On the contrary, they made them wider.
There are growing differences in social well-being and the population groups that have been mostly affected by the reforms have a feeling of injustice and believe that politics is at odds with the citizens’ interests. The reforms are incoherent and non-systemic, which causes problems for the citizens.
People have come to realize that social disparities among them are not always solely results of their different abilities and output – sometimes they are caused by speculation and criminal activities. The Slovak public reckons that an ongoing widening of the economic gaps among the respective society groups is socially and economically untenable.
Today it is difficult to assess the future impact of the implemented reforms on society, especially on the national economy, social issues, education, healthcare or the demographic situation. It is possible that they will cause a slow-down in a socially sensitive area such as the education system, healthcare, science or culture, where progress is measured not in terms of euros or economic growth rates, but rather in terms of quality of life.

The voicing of these words does not imply my opposition to the reforms. Any hesitation as to their implementation would be wrong. I am just calling for a sober evaluation, critical thinking and the dampening of the euphoria that some politicians show signs of when evaluating the progress of our society. Each change goes hand in hand with concerns and dislike, particularly on the part of the ones affected. We cannot evaluate the reforms before some time has passed. Reforms need time for their effects to become visible.
In the course of the reforms we jumped to the conclusion that the state is a bad owner. We have to change our perception of the state. After all, the state is responsible for reforms, for setting their rules and also for the legal framework. The State has a wide range of positive functions and roles essential for a prosperous society. These include investment in human capital, the setting and implementation of regulation standards and the creation of innovation capacities.
Adequate state regulation and the abolition of monopolies have to bring tangible benefits to the citizens, such as the lowering of their costs of living. However, in Slovakia, the privatisation in the energy and telecommunication sectors – which have a direct impact on costs of living – has not been accompanied by strict regulation and abolition of monopolies. The latter are thus able to increase the prices without any fear.
The citizens often complain that the state is not protecting them against the unruliness of monopolies that force their customers to get the short end of the deal. Consumer prices are thus permanently on the upswing as monopolies strive to achieve maximum profits at all cost, regardless of the social consequences of these measures.
Every day I receive numerous letters from desperate citizens, who are a litmus test of our situation. These letters are often written by people in difficult situations, unemployed parents who had been made redundant without their fault, who cannot afford to pay rent and are forced to move out of their homes.
I also receive letters from older people who are ill and cannot afford to pay for their medication, rent and food. Their pension is not sufficient to provide for their living, even though they had been working hard for all of their lives. These are letters full of desperation. Letters from single mothers with no jobs. Letter from people who are in dire need themselves, yet see or hear the glamour of new luxury around them every day.
I am worried by this! I ask myself „Why is that so?“ Do the public authorities responsible for the regulation of these businesses have sufficient powers? Why are they so submissive? As a result, the public view them as an unnecessary appendix of state administration, where political parties appointed their political nominees.
Currently we see a growing dominance of the rule of political parties at the expense of professionalism in state and public governance. The balance of power in the National Council of the Slovak Republic has changed significantly due to a number of MPs leaving their parliamentary caucuses. Consequently we have a situation, whereby neither the coalition government nor the opposition control a parliamentary majority. The passing of laws encounters difficulties and is only possible with the support of independent MPs.
Suspicions have been raised among Members of Parliament concerning non-transparent lobbying for political support, which damages the publicly perceived authority and credibility of the Parliament and other bodies representing the State. One of the tasks of the next Parliament should be a change of the electoral law, which had already been scheduled for this term. A new Elections Act should primarily provide for a politically stable environment for the representatives.

Distinguished Parliament,
Along with economic and social stability, legal stability in Slovakia is of crucial importance. It is necessary to strive for an adequate level of legal stability, so that the negotiation of European laws and their subsequent implementation in Slovakia’s legal system result in a balanced and clear legal system compatible with EU legislation. We also have to uphold the principles of rule of law, i.e. legal certainty, protection of citizens, consistence of legal regulations and enforceability of law.
A high-quality legislative process and its results are not only the cornerstone of strengthening democracy in the Slovak Republic, but also a part of the functioning of the democratic process in the European Union.
The right of the veto vested in the President is an integral part of the legislative process. Even though I have used this right in 22 instances, I would like to assure you that I have not been keen to do so. I have only used it in cases where no other solution was possible, particularly when I had doubts about the compliance of a provision of the law in question with the principles of the Constitution of the Slovak Republic.
As to my position on some of the solutions entailed in the laws passed under the health care reform package, my objections, shared by a number of experts, have proved justified. This is witnessed by the fact that the Government has already proposed amendments to all laws of the healthcare package, even though they only became effective on 1 January of this year.
This brings me to the problem of excessively frequent amendments to laws. Acts are being amended shortly after their effective date and some even prior to their effective date.
The modification of several laws through one amendment has almost become a rule, even though according to Art. 11 (2) of the Lawmaking Rules this should be an exceptional method. I also wish to highlight the importance of coordination of lawmaking in related areas of social relations, which requires subject-matter knowledge of social relations to be regulated.
A serious shortcoming is the setting of the effective date of a law – the time period between the publication of the law and its effective date is often insufficient. Subsequently it is impossible for all those affected by the law to become familiar with it.
Another cornerstone of legal stability is the reform of the judiciary focused on improving the work of judges and shortening the length of proceedings. There are ever more petitions complaining about delays in judicial proceedings, despite the fact that a law accelerating judicial proceedings has been in force for several months. The lost legal disputes in Strasbourg bear witness to that.
Crime is a particularly grave problem of our society. Our citizens have justified complaints regarding the great number of attacks against the health and lives of people, aggression, robberies, fraud, larceny, blackmail, various groups settling old scores by using torture, threats to families and murders.
Then there are the criminal activities mentioned in the Report on the work of SIS (Slovak Information Service), which was brought to your attention in May. Without going into much detail, I think that although this criminal activity does not affect common people, it is particularly grave with respect to the functioning of the authority and economy of the State. This concerns asset-stripping schemes of companies and organizations owned by the State, the National Property Fund and local or regional self-governments, bid rigging, overcharged deliveries, corruption and favouritism in the process of privatization, public procurement, appropriation of state funds and by the decision-making of state and self-governing bodies, tax and customs frauds, credit frauds, leasing frauds and insurance frauds, etc. The National Council has passed a new Criminal Code and Code of Criminal Procedure. Real life will show, to what extent they will contribute to the elimination of these serious and socially detrimental phenomena.
Criminal policy must ensure legal certainty and personal safety especially of those who abide by legal regulations and respect the legal system and moral principles. Based on the principle of legality, the executive branch and the judiciary have to prevent any delays to and ensure the speediness of the entire proceedings, including the announcement of the final judgement and its execution. The fundamental principle should be adhered to, according to which “a person that commits a criminal offence shall face criminal liability, including proper punishment“. And vice versa: “a person that leads an honest life shall be certain to have nothing to fear from outlaws or from law enforcement authorities”.
The crime rate in Slovakia continues to grow. To a certain extent this is a consequence of new civilisation phenomena, as well as the social and economic situation in the country. If we are to fight crime more effectively, we need to ensure a smoother functioning of all three bodies participating in the criminal proceedings, i.e. courts, prosecution and the police.
There is still no reason to be satisfied with crime investigation. The fact that certain criminal acts are not properly investigated may be caused by the under-staffing of criminal investigation bodies. I have been provided with information according to which a single policeman may deal with up to 150 different cases simultaneously, which is untenable. Such a situation is unbearable for the staff.
In my opinion the courts and the prosecution are also short-staffed. Moreover, I have a feeling that judges are becoming more passive. It is up to the judges themselves and their professional organizations to deal with this.
Having mentioned the need for a good and fair criminal policy, the principles and priorities of social, economic, organizational and educational prevention are undeniable. This should also become a priority for state bodies, self-government bodies, as well as churches, non-governmental organizations and their work with children and youth. I call on all of us to undertake this noble mission, because the formation of a human personality is an essential task for everyone who is able to speak, lead by example and directly influence their surroundings. In this respect, sports and cultural activities play a significant role, including the work of Arts and Music Schools.
Directly related to the economic situation of society, social prevention is the main pre-requisite for the re-integration of our fellow citizens into the work process. Work not only cultivates and boosts moral values, but also provides for a dignified life of individuals and families! It is high time to acknowledge the time-honoured truth that the punishment itself does not solve crime! Dealing with crime is only possible by means of factors that enhance education, moral values and stamp out the criminalization of people.

Ladies and gentlemen,
What life does our society lead? Since November 1989 we have been subject to several changes. In many ways we accepted the lifestyle of the Western society, dominated by individualism, liberalism, moral relativism and consumer and political indifference.
People are gradually getting used to the new social order. Most of them have realized that nothing comes for free. They are starting to realize that jobs will not fall in their laps; instead they have to commute to their workplaces. They have started to treasure their work more than before. They are learning to take advantage of local resources, but also job opportunities abroad.
Political freedom and freedom of enterprise have brought about a differentiation of life conditions, which has been accompanied by a diversification of lifestyles. The range of money-making methods has become broader, both in the positive and the negative sense.
The latter connotes illegal methods – economic and other crime, tax evasion, etc. On one hand the said diversification boosted human creativity, however on the other hand it has caused decadent tendencies: drug abuse and excessive acceleration of the pace of life that threatens mental health, co-existence of generations and family relations.
Changes in the lifestyle of young people are so profound that they cause communication barriers vis-à-vis the generation of their parents. A large group of extraordinarily ambitious, independent and strong-minded (sometimes coldly rational) individuals stands out from the society of young people. Yes, this is also a part of life in our country.
The population is confronted with negative trends, high level risk of loss of employment and a marked decline in the standard of living. The family fails ever more often to resolve these problems, conflicts arise, domestic violence occurs. Ensuring a decent life for families with children means achieving economic and social conditions under which the raising of children does not cause a threat of poverty and which enable a harmonic development of the family and the society.
Family is the most natural environment for the raising of children, but if it is to meet its roles, the social and housing situation must improve, as well as the working-hours flexibility and part-time job opportunities.
Everyone has the right to develop their abilities and pursue their ambitions in economic, political and social life. This should apply to the equal status of women in our society, too. Equal opportunities should not be viewed as the gender agenda of feminism, but rather as an interest of the entire society. This implies the necessity of creating an institutional and legislative framework guaranteeing a life of dignity for all women and mothers.
The power of the media is markedly rising in Slovakia, particularly in the context of formation of lifestyle, awareness, culture and acceptance of information, especially from the television. People have accepted the simplification of the reality conveyed by the electronic media into their privacy.
It is by no means uncommon for some media to be used in political competition, regardless of the principle of objective political reporting. In a drive for higher ratings, sensationalism and trash takes priority over original production. The Slovak Radio should be singled out as a positive exception in this respect.
Instead educating cultural citizens and promoting spiritual development, people’s minds are inundated by egotism, violence, cultural shallowness and tawdriness.
We usually rely solely on the functioning of the market. Market plays a crucial role on the economic processes. However, freedom as an empty space without values will not be filled by people making money, living in comfort and travelling. The market is not almighty and cannot satisfy spiritual needs. I support the market economy, but not a market society or market morals. That is a fundamental difference.
A greater sensitivity to events that take place around us and to our own life needs to be cultivated. Otherwise we may become prisoners of the narrow space in which we live, framed by work, career and property. In spite of positive changes in the economy so far we have witnessed growing egotism among the people while politics is getting more coarse, shallow and ignorant to the need for social-development, culture, education and spiritual values.
One of the criteria, by which the maturity of a state and society is measured, is the level of culture of its citizens, their relation to the cultural heritage and approach to the cultural values of the present day. Culture is therefore a significant indicator of the state of a society and the quality of life of the individuals living inside it. Slovakia is a country with an immensely valuable and rich cultural heritage bequeathed by generations of our ancestors. Aware of the priceless cultural values created by past generations, in March 2001 the National Council of the Slovak Republic passed the Declaration on the Protection of Cultural Heritage. Sometimes I get the feeling that we have not moved beyond that declaration.
I admit critically that the present era is not favourable for cultural development. Thus, all of us who are responsible for the governance of this country urgently have to prevent the decline of culture, cultural orientation and moral values in Slovakia.
Only a nation aware of its spiritual and cultural values, cultivating the legacy of its predecessors and proud of its language is able to establish a stable and functioning economy and a strong state.
Despite the frantic pace of changes in society – or maybe because of this pace – there are only sporadic signs of a public discussion unencumbered by the burden of partisan politics. The exceptions are few and include addressing the consequences of the windstorm in the High Tatra or the completion of the construction of the Slovak National Theatre. The absence of public discussion bodes no good for the formation of a consensus, by which the society could exert pressure to ensure that best solutions are adhered to. Without public discussion there can be no prevention against mistakes that could have been avoided in time.
A fair share of the responsibility for the absence of such a debate is borne by the media, be it print or electronic media, private of public. A mission statement of the public media, which should participate in the quest for the generally respected values of society, is missing in particular. This problem calls for an immediate solution, as the current situation is not only contrary to the law, but also at odds with the interest of the entire society, in terms of its education and cultivation roles.
There is another worrying phenomenon, which is far from unique to Slovakia. The media portray politicians and ministers as almost the sole speakers not only on behalf of their ministries, but also on behalf of the public and they often get media time, even though they have nothing to say.
The intellectuals – save for a few exceptions – have taken a back seat, although a part of them are active in the commercial sphere. Genuine public authorities outside political circles are vanishing. There is no-one to formulate the public interest, therefore only politicians do it. Consequently, the formulation of public interest is often one-sided, biased, which is bad for us, as well as for the future of Slovakia.
The public is very perceptive and appreciates our citizens successfully representing the Slovak Republic at various sports, cultural, artistic, scientific and social fora. I would like to thank all of them and specifically our sportspeople. Their successful representation contributes to the strengthening of esprit de corpse, self-confidence and pride in our country.
I cannot omit the phenomenon of national and state identity. The emergence of the Slovak Republic as a free, democratic and independent state on the map of modern Europe and of the world on 1 January 1993 was only the beginning of a journey, which we, as a state-building nation have to undertake, so that the world will come to understand the significance of that historical event for us.
The school plays a crucial and imperative role in the raising and education of the youth, in the reinforcement of their national identity and deepening the knowledge of national history. As I said before, at the level of primary and secondary schools it seems necessary to put more emphasis on the implementation of key historic milestones and prominent national historic figures into the curricula of the respective subjects, together with their clear interpretation.
History is the memory of a nation. The wise learn the lessons from its course and set the right direction for future development. Let‘s do it this way, let‘s preserve and develop all that has been acquired by our ancestors in the hard times of the past, let’s maintain our national pride and the world around us will respect us.
The same applies to the cultures of communities of national minorities and ethnic groups living in the Slovak Republic. Since 1989 we have witnessed a keen interest in minority issues. However, in Slovakia, minority problems are viewed as often politically motivated issues related to the Hungarian and Roma minorities. It is frequently forgotten that Slovakia is home to other communities of smaller national minorities, such as Carpathian Germans, Czechs, Moravians, Croats, Ruthenians, Russians, Polish, Bulgarians, Ukrainians and Jews, whose culture is equally interesting, rich and unique. The state is obliged to ensure that all minorities have equally adequate conditions for their existence, because all cultures, regardless of size of their populations, are a part of our cultural heritage. We may not prefer one or two cultures due to their share of population or due to political or other reasons.
The protection of national minorities and ethnic groups in the Slovak Republic is guaranteed by a number of real legal instruments, spanning international multilateral conventions, international treaties, the Constitution, special laws, government decrees and various ministerial regulations. I dare say that members of national minorities in Slovakia enjoy excellent conditions for their development, especially compared to the situation in some other European states.
In this context I should not omit the disparity between the state budgetary resources earmarked for the cultural development of national minorities and the disproportionately smaller amount allocated for the cultural and educational activities of Slovak expatriates, our fellow countrymen. Our fellow Slovaks need support from home to preserve their own cultural traditions and their identity. It is high time to create effective structures for cooperation with Slovak expatriates.

Distinguished Parliament,
Let’s ask ourselves the question: “Which way forward? “. The future development in Slovakia will be influenced by the very position of Slovakia within the European Union.
The Slovak economy ranks among the smaller ones, which is why we will have to opt for a diversified strategy when setting our position in the European Union and selecting the level of cooperation with other EU Member States.
Slovakia becomes home to a growing number of significant European and global transnational corporations, although so far mainly in car industry. However, we can say that, owing to the reforms and the involvement of foreign investment in the Slovak economy, Slovakia is fast to integrate into the main trend of the global development. This at the same time provides for our better entry-level conditions within the European Union.

The European Union has declared knowledge-based economy as one of its primary objectives. Slovakia has to join in lest it falls behind. The realization of information technologies may not necessarily bring new jobs, however it can change the position of our territory in the logistical chains of large transnational companies.

In the light of a shrinking volume of social benefits, the maintenance of reasonable employment levels becomes a key prerequisite for the preservation of social solidarity and of a positive development of reforms. Experience shows that as long as people receive regular income for work, a part of the population is willing to live on a tighter budget.
It is essential to make the use and spending of public resources more effective. According to estimates, if we consistently apply the principle of the State Treasury and the principle of effectiveness in public administration, much more savings could be made from the amount of resources currently spent.
This would also enable to re-allocate the saved money to the enhancement of social cohesion in the society.
The State has to guarantee social justice – naturally, in conjunction with hard work and moral conviction on the part of the individuals and groups. The liberal market cannot achieve all this. Instead, this is the role of the state, which affects the way social institutions act and codifies the legal order. The state also has to guarantee the right of its citizens to pursue their goals for their own benefit, as well as for the benefit of the society, on a moral and ethical basis. Only a society based on moral values is a guarantee of a balanced social and economic development.
We need to have a vision of our existence and our future as a member of the European community. We cannot merely adapt to something or someone all the time, but rather have a clear and original vision of our existence and our future. The principles of social justice are deeply entrenched in the consciousness and existence of the Slovak society. I do not mean to hark back in the past, but it is a fact that we have always been a society of hard and honest work aimed at our survival and better life conditions. The principle of social solidarity and moral integrity has also been forming our national traditions, thanks to which our spirit also survived. We had never dominated anyone or exploited other people’s work.
One of the few ways to take in the future is the upholding of a socially-oriented market economy, as stipulated in Article 55 of the Constitution of the Slovak Republic.
Social cohesion, equal opportunities and the creation of living conditions that do not infringe human dignity have to become the fundamental goal of social policy and other policies. We need to give people a firm footing. Specifically, we need to provide for a high-quality education, jobs and fair pay for the young, support for families with children and sufficient material support for a decent pension. This is and has to be our political strategy.
Equal opportunities can only be guaranteed by equal access to education, healthcare on a reasonably high level, job opportunities, housing and basic life needs. Equal opportunities also entail zero tolerance for discrimination, whether gender-based or otherwise.
We cannot forget our citizens with specific demands due to their medical condition, age or childcare. These citizens may not be pushed to the periphery or work and social activities and interests. Provision of adequate opportunities, especially with respect to education and access to the labour market is the best way to fight social exclusion and poverty.
The state must use social policy to ensure that each citizen will feel a useful and valuable member of the society.
The highest value of each community is a living human, his physical and mental well-being and his human dignity. The level of care for the socially underprivileged and the senior population is one of the indicators of the moral level of each society.

We should try to think more about the way others see us. Slovakia is constantly criticized for high levels of corruption on the national level, as well as on the regional and municipal levels, weak enforceability of law, the Roma issue, problems in dispute resolution and a general low predictability of future development resulting from frequent changes in business rules.
It is necessary to earnestly address these issues. Corruption is a grave problem with origins in the past; however it is not an insurmountable one. A number of laws preventing or detecting corruption have already been adopted, others are under way. This is related to the issues of property declaration, proof of origin of property, conflict of interests, lobbying, revocation of immunity for judges and members of parliament, etc. Nevertheless, we have to realize that the passing of laws itself is not going to solve the problem.
The Roma issue should not be neglected either. We have to acknowledge the existence of a considerable part of population in our country, the life and social conditions of which are below the average. Long-term attention has been paid to the tackling of the so-called Roma issue and substantial resources have been spent in this respect. In 2001 – 2003 the PHARE fund alone allocated more than half a billion Slovak koruna for this purpose. Nonetheless, the effect is not visible. We need to think about this fact and deal with it.
During my term in the presidential office I will give priority to the building and strengthening of rule of law and a state based on respect for human rights and their upholding. The State has an obligation to safeguard fundamental individual rights and freedoms. That will restore the citizens‘ trust in public institutions, their democratic creation and at the end of the day spark their interest in politics.
The primary function of a state is to guarantee the security of its citizens. Within my constitutional powers I will take care to ensure that the police work intensively to enhance the security of citizens.
I deem important the reinforcement of social cohesion of the society. Cohesion should be based on prosperity, economic growth, social solidarity and stability of the social order. Prosperity and stability of a country depends to a great extent on civic institutions. Culture plays a vital role in this context, as it connects social and civic commitments.
Human capital is our most precious treasure. Yet, for various reasons it is not being fully utilized, which in turn adversely affects economic prosperity, but also the happiness of people and their spiritual life. This demonstrates the importance of the development of high-quality human potential, training of experts and education. This will require resources, nevertheless, investment in education and science are undoubtedly the best investment.
Let’s remain true to ourselves. We have brought into the enlarged Europe our values, our culture. Let’s preserve these values and cultivate them. National and cultural traditions are the basic building block of our history. Nowadays their meaning lies in strengthening the spiritual essence of the Slovak nation, the communities of national minorities and ethnic groups, restoration of morality, modern patriotism and a new confidence of the Slovak citizen.

Distinguished ladies and gentlemen, Members of Parliament,
Distinguished Government of the Slovak Republic,
Your Excellencies,
Perhaps some of you or some of our fellow citizens expected me to bring up some other problems in my report and outline clear solutions to them. There are numerous grave problems in other areas of life, which I have not included, such as agriculture, rural development, regional development, tourism, and culture and sports promotion. I did not aim to touch on all the problems. It is impossible to mention all the problems that concern us. I intended to be critical in all areas where appropriate. Praise does not help to sort out problems. Only constructive criticism and dialogue will take us further. I believe I have drawn your attention to several issues and I expect the relevant authorities to deal with them. I hope that despite various turbulences the Government will fulfil its agenda, as approved by the National Council. I also hope that problems which I mentioned, but also other ones, will be tackled with energy and resolve. Allow me to sum up the main tasks confronting our society:

Making citizen the centre of all activities of public administration authorities
Improving the work of representatives at all levels of public governance drawing up of a new electoral system enhancing the quality of representative bodies
Prioritizing expertise over party affiliation in the decision-making concerning any issues of interest of citizens or society
Increasing the quality of decision-making and preventive activities of courts, prosecution and the police
Creating conditions for the development of scientific research and development in the Slovak Academy of Sciences as well as at universities
Administrative and formal reconstruction of education at all levels
State-guaranteed preventive and therapeutic healthcare aimed at improving the health of population and increased care for the elderly
Promotion of church and civic organizations forming the spiritual, humanistic and cultural profile of a man – the citizen
These are some of the issues I would like to moot during my talks with representatives of state and self-governing bodies

This is my first Report on the State of the Society. It is thus appropriate for me to ask myself in the end: What is the Slovak society like? This will be my last remark.
The Slovak society is a community of members of the Slovak nation, national minorities, ethnic groups, various religions and confessions, customs, cultures, traditions, values and group as well as individual interests. No wonder this society is riddled with contradictions, problems, difficulties and hopes. Slovak society is very heterogeneous.
It is a rather varied society. However, there should be unity in principal issues of existence. I mean the relationship to the state, statehood, home country, legal and moral responsibility for the development of the state in all areas of life. The unity should not exist as a model and uniformity, but rather as unity in variety, connected by an agreement on the principles, the love for our homeland and our patriotism.

The society we are talking of nowadays is on its way of forming democracy, humanisation, freedom of though and enterprise, new relationships in the political and economic system.
Behind all this we must see the human individual, his needs in life, his concerns, social problems, fair interests and his desires.
That is why the work of each of us is meaningful. The state does not only mean citizens, as is often alleged. The state is also the product of the will and decisions of the citizens. The state is primarily made up of state bodies, the President of the Slovak Republic, the National Council of the Slovak Republic, the Government of the Slovak Republic and other central bodies of state administration and bodies of public authority. The citizens create the political system and the state itself so that these subjects arranged in a constitutional and legal system serve across-the-board, nation-wide and group interests, provide for relative peace, protect human rights, freedoms, legal institutes, freedom, certainty, economic prosperity and ensure that everybody lives in conditions that respect human dignity.
At the very end I would like to call on all of you gathered at this place as well as all of our citizens to actively participate in the work and programmes of economic, social, cultural and spiritual development of the Slovak society. Each of us can do their share of work to fulfil them. I am convinced that only together, in close cooperation with the state and self-governing bodies, social and church communities we can make these goals come true. There is a lot of work on the development of the Slovak society ahead of us. It awaits all of us – me, you and each and every one of us.

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