Slovakia wins dispute; won’t have to pay insurer

Slovakia has won an almost ten-year dispute with the financial giant Achmea, concerning Slovakia's former ban on health insurance companies making profits, with the German supreme court cancelling on Thursday the arbitration decision against Slovakia, TASR learnt from the Finance Ministry on the same day. Achmea filed the lawsuit against the Slovak Republic in October 2008. The reason was the ban on health insurance company profits during the first government of Prime Minister Robert Fico (Smer-SD), which was allegedly contrary to the bilateral investment agreement. The arbitration tribunal issued a ruling in December 2012, in which it found a violation of this international treaty by Slovakia. One month later Slovakia appealed to the Higher Regional Court in Frankfurt. Following a negative verdict in response to Slovakia's appeal, the Slovak Government submitted an appeal to the Federal Court of Justice of Germany. According to the ministry, the related distraint proceedings in Luxembourg should be completed soon, entailing the release of the blocked €30 million. The Slovak health insurer Union ZP, a subsidiary of Achmea, has declined to comment on the verdict.