Slovak parliament ratifies EFSF expansion

Slovak parliament ratifies EFSF expansion
# 14 October 2011 07:50 (UTC +04:00)
A junior party in the country’s ruling coalition torpedoed the cabinet on Tuesday in a confidence motion connected with ratification of the plan to give the European Financial Stability Facility (EFSF) more powers to fight the debt crisis.

The failed attempt had rattled financial markets. The opposition committed to provide votes for the EFSF in a repeated vote, once the early election plan was approved.

Slovakia was the only one of the 17 countries using the euro single currency that had not approved giving the rescue fund more powers, a measure European leaders say is urgently needed to save the currency zone from financial ruin.

The difficulty ratifying the EFSF expansion in Slovakia is a sign of the challenges European leaders face responding to the debt crisis across 17 countries that must all act unanimously.With 5.4 million people, Slovakia accounts for less than 2 percent of the currency bloc’s population and 1 percent of its output, but its parliament could effectively veto the measure.
The delay in enacting the July deal comes even as other leaders are wrangling over further steps to protect euro zone banks if Greece defaults on its debts. The EU will hold a summit on October 23 to adopt more measures to counter the crisis.
#
#

THE OPERATION IS BEING PERFORMED