Get access to the Editor’s Digest for free
Roula Khalaf, Editor of the FT, shares her favorite articles in this weekly newsletter.
Slovakia has reopened an investigation into Peter Kažimír, the governor of its central bank, following a judge’s decision that determined reforms enacted by his former political ally, Prime Minister Robert Fico, do not protect him from prosecution.
A ruling made on Friday contradicts a previous decision from November that suggested Kažimír would be shielded from legal action due to a revised statute of limitations related to Fico’s controversial changes to the criminal code.
Kažimír is accused of facilitating a bribe during his tenure as finance minister in a prior Fico administration.
The latest developments in Kažimír’s legal challenges occur right as his first term is set to end at the beginning of June, with Slovak lawmakers divided over his potential reappointment.
First appointed in 2019, Kažimír holds a position on the European Central Bank’s key interest rate-setting panel.
He has consistently claimed innocence and previously referred to the case against him as “a judicial farce.”
This recent ruling comes from a special court handling his bribery allegations, whereas the November decision from the Supreme Court merely provided guidance on applying Fico’s new law, not a conclusive ruling on Kažimír’s case.
According to Vladimír Vaňo, the chief economist at Globsec in Bratislava, if Kažimír is replaced, it could influence the ECB’s monetary policies, as he is seen as part of the more hawkish faction within the ECB governing council.
Kažimír’s attorney maintained that his client is innocent, asserting that the case should be dismissed based on the statute of limitations. “The court’s actions are unlawful and incorrect,” Ondrej Mularčík stated to the FT.
The central bank noted it couldn’t make a comment while its governor is in Washington this week, and the ECB also refrained from commenting.
Fico’s revised criminal code has faced criticism from Slovak opposition figures and EU representatives who argue it serves to undermine the rule of law. The new legislation has reduced penalties for theft and corruption while shortening the timeframe for legal prosecution.
Additionally, Fico dismantled a special prosecutor’s office and a national crime agency last year that were responsible for investigating serious crimes, including corruption.
Judge Milan Cisarik asserted that Fico’s new statute of limitations does not apply to cases involving alleged misuse of EU funds, which may fall under the jurisdiction of the EU public prosecutor’s office. A new hearing has been scheduled for May 23.
Kažimír was previously convicted and fined €100,000 for his involvement in a bribery case two years ago, leading both the prime minister and the president at the time to call for his resignation as governor. However, Kažimír launched a lengthy appeal process and remained at the central bank after Fico’s return to power in 2023.
If Kažimír were to be convicted and sentenced, it would represent a significant setback for the current government and a considerable triumph for the rule of law, remarked Renáta Bláhová, a finance and tax consultant at BMB Partners in Bratislava.
In addition, Kažimír’s reputation has been further tarnished by a separate investigation regarding the purchasing of a villa in southern France by his partner, Katarína Korecká.
Reports have emerged suggesting that the property was bought using a loan from an oligarch and offshore accounts in Cyprus.
Although Slovak police have launched an inquiry following these reports, no charges have been filed related to this transaction. Korecká denied any wrongdoing but has not disclosed the details of how the villa was financed.
Additional reporting by Olaf Storbeck in Frankfurt
