Slovakia to vote on expanded EFSF today
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  Slovakia to vote on expanded EFSF today
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Author Topic: Slovakia to vote on expanded EFSF today  (Read 678 times)
Tender Branson
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« on: October 11, 2011, 02:49:47 AM »

Eurozone bailout fund faces key Slovakian vote

Slovakia will vote later on measures to bolster the powers of the eurozone bailout fund, seen as vital in combating the bloc's debt crisis.

After Malta approved the plans late on Monday, Slovakia is now the last of the 17 member states to vote. All other members have approved the measures.



But doubts remain about the outcome of the vote, with coalition partners unable to agree a compromise deal.

Without a deal, the government will have to rely on opposition support.

"I have to say that the coalition partners have failed to reach an agreement," said Slovakian Prime Minister Iveta Radicova.

She said talks would resume before the vote in Parliament later in the day.

To expand the powers of the bailout fund - the European Financial Stability Facility - all member states must agree on the measures proposed in July.

These include expanding the size of the fund to a lending capacity of 440bn euros ($600bn; £383bn).

They also include giving it the power to buy eurozone government debt and offer credit lines to member states and to banks.

However, these plans are now seen as inadequate, with markets suggesting the fund needs to be nearer 2tn euros to be effective.

Other plans agreed in July, to make private investors take a hit on any default by Greece on its debts, are also now seen as insufficient. Reports suggest leaders are contemplating a 50% cut rather than the 21% cut originally proposed.

http://www.bbc.co.uk/news/business-15251441
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Tender Branson
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« Reply #1 on: October 11, 2011, 03:36:40 PM »

The Slovakia Parliament just voted against the bailout fund increase ...

The government will now most likely fall and then there will be a new vote on it and it will be passed with the votes of the opposition.
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phk
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« Reply #2 on: October 11, 2011, 05:12:52 PM »
« Edited: October 11, 2011, 05:30:35 PM by phk »

Slovakia, a country with one of the lowest median salaries in the EU would have have to pay more VAT to help the Greeks. Not gonna fly.
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Insula Dei
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« Reply #3 on: October 11, 2011, 05:14:27 PM »


The government will now most likely fall and then there will be a new vote on it and it will be passed with the votes of the opposition.

How certain would you say this result is? Because I'm hearing terrifying reports about how this is going to crush the global economy.

Quite certain.
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shua
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« Reply #4 on: October 11, 2011, 06:13:20 PM »

so they can't just do this without Slovakia's help?
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Gustaf
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« Reply #5 on: October 12, 2011, 03:40:51 PM »

so they can't just do this without Slovakia's help?

All euro countries have to approve it and Slovakia is one of them. They do not actually need Slovakias money of course, but they also cannot just stipulate formally that only Germany pays.
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