Slovak parliament approves protectionist law 

"I've tried to explain to them [opposition parties] that the state is not nationalising, the state's buying at a price generated by the bankruptcy trustee," Economy Minister Lubomir Jahnatek said after the vote on Thursday. 

The opposition, however, says the legislation, valid only until the end of 2010, will scare investors off and deepen legal uncertainty for the corporate sector. 

Local news agency SITA cited employers group 'Klub 500' executive director Tibor Gregor as saying it was concerned about the law, adding it was unacceptable for businesses. "This law does not help to create new jobs, it rather scares new possible investors off from coming to Slovakia, because it's undermining our legal environment," said Ivan Stefanec, a deputy of the strongest opposition party SDKU. 

Prime Minister Robert Fico's government has looked to raise the state's role in the economy since coming to power in 2006, aiming to shield the country from the global downturn. 

Under the new legislation companies from industrial, energy and oil sectors, heat and power distributors, and water-management businesses will be regarded as strategic. Companies with more than 500 employees are also included. 

The eurozone newcomer's heavily export-reliant economy is coping with one of its biggest downturns. It is expected to contract by 5.7% this year, putting the government under pressure as unemployment hits multi-years peaks. 

The Slovak parliament approved an updated draft which clarified conditions and technical details. Some 78 deputies voted for the law, three were against and one did not vote. Almost the entire opposition did not take part in the vote. 

(EurActiv with Reuters.)