BRUSSELS (MNI) – The European Union urged Slovakia to swiftly
ratify changes to the euro zone’s bailout fund after the country’s
parliament voted against the changes, in a move that provoked the
collapse of the ruling coalition and could undermine the currency
bloc’s efforts to tackle the sovereign debt crisis.
“We call on all parties in Slovakia to rise above positioning in
short term politics and ensure the swift adoption of a new agreement,”
the President of the European Commission, Jose Manuel Barroso and EU
Council President Herman Van Rompuy, said in a statement on Wednesday.
Enhancing the powers and flexibility of the fund, the European
Financial Stability Facility, is “in the interests of all euro area
countries and also the Slovak people,” they said.
The coalition government of Slovak Prime Minister Iveta Radicova
collapsed on Tuesday night after only 55 parliamentarians backed the
government’s bid to approve the EFSF changes, agreed by EU leaders in
July.
Another vote is expected by the end of the week and EU leaders,
including German Chancellor Angela Merkel, have said they are “very
optimistic” Slovakia will eventually approve the changes.
In order for the EFSF’s new powers to become effective, parliaments
in all 17 Euro area countries must approve the enhancements, which
include powers to intervene in secondary bond markets and support
directly struggling banks and governments.
–Brussels Bureau, +324-952-28374; pkoh@marketnews.com
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