Stanko Stepišnik stepped down as economy minister on Wednesday in the wake of an uproar against tool maker EMO Orodjarna, partly owned by the minister, vying for subsidies handed out by the Economic Development and Technology Ministry.
The member of the ruling Positive Slovenia (PS), who headed EMO from 1984 to 2012 and still indirectly holds a 5% stake, announced the decision after a meeting with Prime Minister Alenka Bratušek today.
Both stressed for the press that there had been nothing illegal in EMO's vying for state funds, while Stepišnik also claimed that the company did not act immorally.
He told the press that while his ministry had been trying to help troubled companies, "these accusations and unrest, ordered by somebody and wilfully produced by [the media]" had caused his resignation and decision to return to parliament.
Stepišnik argued he did not wish to undermine EMO's position in relation to other companies and wanted to enable it, with his resignation, to participate in public calls.
Bratušek thanked Stepišnik for his work, while agreeing it was difficult to be in charge of ministry in such circumstances. "But there was definitely nothing illegal here," she stressed.
Such high standards should remain in place in politics and they should also be observed by those who were been attacking Stepišnik for two days, the PM added.
The PM has as late as Monday said that she had assurances from the minister that EMO, which already obtained EUR 348,500 from the state earlier this year, would not participate in a new call for applications for EUR 30m worth of subsidies handed out by the ministry's SPIRIT agency.
While the first case raised eyebrows, reports that the company was preparing for a new application appeared to act as the final straw.
The news prompted strong criticism also from fellow coalition parties, who said they expected determined action from the prime minister or a resignation by Stepišnik.
Stepišnik has maintained that he had done nothing illegal, since he had recused himself from the selection procedure.
He reiterated this view after announcing his resignation, telling the press that all the funds obtained by the company had been used for development, research and training and that only imprudent use or the purchasing of luxury items with these funds would have been problematic.
EMO Orodjarna was able to participate in the calls as a result of legislative changes from 2011, which removed the ban on companies owned by officials in vying for state funds.
The Corruption Prevention Commission said the main problem in Stepišnik's case was the appearance that he could use his position to promote the interests of the company he is associated with.
There must be no shadow of a doubt that an office can be abused to promote personal interests or those of companies or individuals an office-holder is affiliated with, Rok Praprotnik of the commission said in response to the resignation.
The commission had highlighted as early as last month that only a change of legislation passed in 2011, which it strongly opposed, had made such dealings between companies affiliated with office holders and the state legal.
The resignation has been welcomed in the coalition as a move that will ease pressure on the prime minister and the government and stop diverting attention from the task at hand.
"His decision to resign is the best for the government and also for his company," PS deputy group leader Janko Möderndorfer said. This was echoed by the Matjaž Han of the coalition SocDems, who said Stepišnik "acted wisely and prudently".
That the credibility of the government is being preserved with the move is also the view of leader of the coalition Citizens' List and Interior Minister Gregor Virant. "He did the right thing," said Virant.
The opposition also welcomed the resignation today. The Democratic Party (SDS) assessed that it came too late given that the minister had failed in his job. "Nothing has been done for business this year," SDS deputy Jože Tanko said.
Tanko also said that the case of EMO Orodjarna was the first of its kind in Slovenia. The minister cannot argue that he could not influence the commission he formed, the lawmaker said.
This was echoed by New Slovenia (NSi) leader Ljudmila Novak, who said that it was more than clear that Stepišnik was no longer suitable for the job after his company received funding from the ministry.
Bratušek must now inform Parliamentary Speaker Janko Veber of the resignation within seven days, whereupon parliament will have seven days to get acquainted with the decision.
The prime minister will then have ten days to nominate a new minister or propose one of the cabinet members to fill in temporarily.
Neither Möderndorfer or Han would speculate about potential candidates to fill the spot or whether it could involve a wider government shuffle, which media have been speculating about in recent days.
Han suggested that the Chamber of Commerce and Industry (GZS) could be asked to contribute its opinion on who would be best to fill the position, which is currently assigned to Positive Slovenia (PS).
Stepišnik is the second minister to leave Bratušek's cabinet since it took office in March. Igor Maher resigned as infrastructure minister only a few days after taking office amid accusations that he owned an illegal build on the Slovenian coast.
Stepišnik, who has a degree in engineering and a master's degree in business administration, started his political career in 2011, when he was elected to parliament on the PS ticket. He said he decided to run out of the desire to change the business environment.
As an MP he was a member of the committees on the economy and on finance & monetary policy, and the Commission for the Oversight of Public Finances. He became minister after the change in power in March this year.
