Europe

Europe

Slovakia as last eurozone country approves bolstering EFSF

13 October 2011 20:31 (UTC +04:00)

Baku-APA. Slovakia on Thursday approved a plan bolster the European Financial Stability Facility (EFSF). It is the last country in the eurozone to ratify the rescue fund expansion, APA reports quoting Xinhua.

The result of the parliamentary vote was expected as an agreement had been reached before hands between the three governing pro-EFSF parties (SDKU-DS, KDH and Most-Hid) and the largest opposition party Smer-SD.

A simple majority of 76 votes was necessary for the mechanism to be approved, and 114 lawmakers chose to back it in the voting.

This has been the second vote on the bailout fund, while the first one failed to clear the parliament on Tuesday.

The Tuesday vote was linked to a confidence poll in government to force the dissenting coalition SaS to back it as well. But, as neither SaS nor Smer voted in favor, the government fell.

On Wednesday, the three pro-EFSF coalition parties made an agreement on an early election with Smer, which in exchange pledged to back the EFSF.

With the ratification, Slovakia’s contribution to the fund will increase from the current 4.4 billion euros to 7.7 billion, while EFSF’s overall capacity will be increased from 440 billion to 779 billion euros.