National dreams and reality
When the scandal surrounding ČEZ in Albania and Bulgaria broke, I had the feeling that something was not right.
When energy prices are determined by consumers in town squares with the support of populist politicians, it means the end of economic rules. It means going down a path paved with the violation of fundamental rights, where at the end there are just vague solutions.
Surprisingly, to these pair of states was recently added Croatia. After all, there is nothing easier than to say international companies are behind the stagnating economy, not people living beyond their means, dear government and too few prosperous businesses. One of the few is INA, an energy concern whose majority owner is MOL. The Hungarian company has invested more than €3 billion in its Croatian subsidiary, turning what was an inefficient state-owned company into a thriving leader in the region. But few in Croatia appreciate that today. Indeed, politicians have made the company’s profits, its growth, the prices it charges consumers and in particular that the family silver is not owned exclusively by Croats all into issues. The Croats have likewise decided to deal with the stalemate by attacking Zsolt Hernádi, Chairman of the Board at MOL.
He should have answered questions in Croatia regarding the several-year-old Sanader affair, where the former Prime Minister was alleged to have been bribed. Maybe he should have, but he was never subpoenaed either as a suspect or as a witness. In its wake, the court issued an international arrest warrant for Hernádi because he had not appeared at a hearing to which he had never been summoned. Having examined materials and depositions from witnesses, including Hernádi himself, the Budapest court found no grounds for him to be prosecuted since he had not been charged with any criminal offence, and for that reason a petition to extradite Hernádi was rejected. Croatia’s economic and political elite have been dreaming of the arrival of a perfect investor. So only one question remains: How great would the Croats' disappointment be if they discovered that any responsible investor in INA would have behaved the same way MOL did?
Last week the Albanian government invited ČEZ to negotiate a settlement out of court. All of the sudden. The state always opens with the first blows by the very nature of its position of power, but the further course of battle is always fought under the principle that in international law everyone is equal. The final question remains whether it is in the interest of Croatia to get the reputation of being an unreliable partner.
