Slovak lawmakers adjust contested criminal code reform to address EU concerns

(Reuters) - Slovak lawmakers approved changes to the country's criminal code, increasing punishments for crimes involving European Union funds as the government seeks to soothe concerns from the bloc's executive.

Prime Minister Robert Fico's government pushed through changes to the country's criminal laws earlier this year that reduced penalties and statues of limitations for financial crimes.

That prompted European Commission worries about protecting EU financial interests and accusations from the oppositions that it was a ploy to shield ruling coalition allies from graft probes.

Earlier this month, the country's Constitutional Court - after a challenge by the former president and opposition lawmakers - struck down minor elements of the reform but left most of it intact, including the abolition of a special graft unit the government has pushed for.

Following Commission consultations, the government last week approved further amendments, slightly increasing penalties for crimes concerning EU funds and extending the statute of limitations related to such cases.

Justice Minister Boris Susko said at the opening of debate on Monday that the changes, which would ensure greater protection of EU financial interests, were fast-tracked to minimise any risk of Brussels taking action that could hurt Slovakia's finances.

Slovakia has been keen to avoid any confrontation with Brussels that could put at risk the flow of much-needed EU funds and result in hefty penalties akin to those Hungary has faced in its rule of law disputes with the European Commission.

A Commission spokesperson said a dialogue with Slovak authorities was ongoing and the EU executive would assess the latest changes.

"We follow the developments very closely and will carefully assess the outcome of the legislative process. We hope that this process will address the Commission's concerns," the spokesperson said.    

Critics say changes Fico has spearheaded since his election last year, such as the criminal code overhaul and revamping a public broadcaster, have hurt the rule of law and media freedoms. Fico has also faced criticism for ending state military aid to Ukraine and leaning too close to Russia.

Fico, who accuses the opposition of trying to damage Slovakia's standing with its criticism, has been recovering after being shot four times at close range by an attacker in mid-May, which left him needing hours of surgery. 

He appeared in public for the first time since the attack on July 5, speaking at a state ceremony in which he railed against progressive ideologies, and has attended government meetings since then.

(Reporting by Jason Hovet in Prague; Editing by Tomasz Janowski)