Between 30 October 1998 and 15 October 2002, prime minister of Slovakia MikulÃ¡à ¡ Dzurinda formed his first term in this office. It was the first supermajority government to be formed in Slovakia after the first Pyrrhic Electoral Victory for VladimÃÂr MeÃÂiar and his HZDS. This government allowed them to adopt of a constitution or a constitutional statute such as constitutional amendment for direct elections instead of indirect elections in 1999.
In the 1998 elections that saw the fall of the government of VladimÃÂr MeÃÂiar, Fico received the biggest number of preferential votes among his party colleagues. A year later, when support for the SDý dropped below the threshold required to get into parliament, he left the party, saying he was disappointed with the way the government worked. As early as in the autumn of 1998, a four-person group consisting of Fico, his associate Frantisek Határ, political strategist Fedor Flaà ¡ÃÂk, and media executive Monika Flaà ¡ÃÂková-Beà Âová had begun to discuss and lay plans for launching a new political party. These plans were driven by the falling popularity of the existing parties, and the rising popularity of Fico.
Almost immediately after leaving SDý, the group founded Direction (SMER), which Fico first labelled a party of the third way, with himself as leader. Fico established himself as an opposition politician criticizing the unpopular reforms of the right-wing government of MikulÃ¡à ¡ Dzurinda. In order to keep SMER from repeating the fate of his previous party, Fico introduced a strict set of regulations for his new party, called the "clean hands" policy. The rules stipulated that no one with ties from the previous Communist regime or people who had background with other political parties was allowed to hold party office. This created a new generation of politicians uninvolved in previous corruption scandals; among them was Monika Flaà ¡ÃÂková-Beà Âová, Robert Kalià Âák, and Pavol Paà ¡ka. Another rule was that all party chapters on the regional and local levels were to be 100% financially self-sufficient, and all financial donations were to be made public to the media.
On 14 September 1999, the government decided to gradually shut down the two units of the V1 nuclear power plant in Jaslovské Bohunice with an installed capacity of 880 MW before the end of their technical service life. It committed to closing the first unit by 31 December 2006 at the latest and the second unit by 31 December 2008. The shutdown of the units was one of the conditions for Slovakia's invitation to join the European Union. Although Slovakia was not a member of NATO in 1999, its agreement to use NATO airspace enabled the bombing of Yugoslavia.
A state Slovak delegation to Yugoslavia, which included Prime Minister MikulÃ¡à ¡ Dzurinda and three senior cabinet members, have returned to Bratislava after an August 31 road accident involving their motorcade that left three dead and 11 injured. According to initial police reports, the crash was caused when a Serb motorist attempted a dangerous overtaking maneuver and hit three cars in the oncoming convoy.
The VláÃÂiky (Trains) scandal was the most significant corruption case of the first Dzurinda government (1998âÂÂ2002), erupting in the months leading up to the 2002 parliamentary elections. The controversy centered on a tender for 35 light motor units for Slovak Railways (à ½SR) worth approximately 4.4 billion SKK.
The selection commissionâÂÂchaired by Miroslav Dzurinda (the Prime MinisterâÂÂs brother)âÂÂoriginally selected the Swiss company Stadler. However, the French competitor Alstom complained that its bid was not properly evaluated.
In early 2002, Transport Minister Jozef Macejko attempted to cancel the tender results due to dissatisfaction with the commission's choice, which triggered a massive political fallout.
The scandal became iconic due to a leaked letter from SDKàMP Peter Kresánek to Prime Minister Dzurinda. In the letter, Kresánek famously wrote that if the Prime Minister did not trust the ministerâÂÂs leadership, it could hurt the SDKàparty, implying that party interests were being prioritized over transparent public procurement.
Prime Minister Dzurinda dismissed Minister Jozef Macejko in June 2002, citing a loss of trust and non-transparent behavior. Macejko and several high-ranking officials were charged with abuse of power and corruption in late 2002. In 2005, the prosecution dropped all charges against Macejko and others, stating that no crime had been proven.
The case remains a textbook example of political clientelism in post-communist Slovakia, highlighting the influence of "party treasurers" like Gabriel Palacka, who was often linked to such financial scandals
Early in 1999, the government published "Black Books" documenting the massive corruption and asset-stripping of the previous MeÃÂiar government. However, the cabinet faced criticism when it struggled to secure convictions for these crimes, leading to public frustration over a perceived "lack of justice."
The "Black Books" remain a symbol of the unfulfilled expectations of the 1998 "democratic revolution," marking the moment public enthusiasm for political "cleansing" began to turn into skepticism.
In August 1999, Minister of Transport and Telecommunications Gabriel Palacka (a close Dzurinda ally) offered his resignation following persistent allegations of corruption and clientelism within his ministry. Though he denied wrongdoing, his departure was seen as a move to protect the cabinetâÂÂs image during crucial EU accession talks.
Palacka faced intense scrutiny over several high-stakes deals within the Ministry of Transport and Telecommunications, including:
After resigning, Palacka remained an influential figure, eventually becoming the treasurer of Dzurinda's SDKÃÂ party. In this role, his name became synonymous with "grey eminence" politics and was later frequently cited in the Gorilla corruption file.
He was replaced by Jozef Macejko, who would later be dismissed himself in the 2002 VláÃÂiky scandal.