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President Signs Controversial Strategic Enterprises Act
Thursday 26 November 2009 Zoom in | Print page
Bratislava, November 26 (TASR) - President Ivan Gasparovic signed the controversial Strategic Enterprises Act on Thursday, as he concluded that measures outlined in the legislation aim to mitigate the impact of the global crisis, TASR learnt later in the day.
The law, which was approved by Parliament in fast-tracked proceedings on November 5, raised a groundswell of complaints from the Opposition. Trade unions and business and employer associations also voiced their concerns regarding the bill, as they claimed that they hadn't been consulted in the process of drafting the law. Trade Union Confederation (KOZ) and the Slovak Federation of Employers Associations (AZZZ) eventually asked Gasparovic to veto the act.
In line with the legislation, the state will, until the end of 2010, have the right of first refusal for enterprises deemed as strategic. The law concerns companies that are undergoing bankruptcy proceedings and are important in terms of health protection, state security and the overall performance of the state economy. This status is determined by the number of employees (over 500), considerable importance in the sphere of energy, waterworks, sewerage or water treatment facilities.
"These definition criteria are significant facts from the viewpoint of society," said Gasparovic, adding that the Slovak Constitution endows the Cabinet with the power to decide on substantial measures concerning Slovakia's economic and social policies.
The main reason why the legislation came before Parliament is the current problems at chemicals company Novacke Chemicke Zavody (NCHZ), which is facing bankruptcy due to a fine that it regards as ruinous. The almost €20-million fine was imposed by the European Commission after it was ruled that the company had concluded a cartel agreement with other enterprises to divvy up the EU market.
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