Analyst says that signing EFSF makes Slovakia’s deficit-cutting more difficult

As a result of the Slovak government's agreement to sign the European Financial Stability Facility (EFSF), the country’s budget deficit will almost certainly go up, Andrej Beňo, an analyst with the F.A. Hayek Foundation told the TASR newswire on July 16. “The politicians’ task now is to cut the deficit, so by approving this commitment the accomplishment of this goal will get significantly complicated,” said Beňo.

As a result of the Slovak government's agreement to sign the European Financial Stability Facility (EFSF), the country’s budget deficit will almost certainly go up, Andrej Beňo, an analyst with the F.A. Hayek Foundation told the TASR newswire on July 16.

“The politicians’ task now is to cut the deficit, so by approving this commitment the accomplishment of this goal will get significantly complicated,” said Beňo.

The analyst said that Slovakia will soon need to borrow funds on financial markets in order to cover its portion of the mechanism. Beno added that he thought the use of the eurozone’s guarantee package will be requested by Spain as early as this autumn and that it is probably only a matter of time before another country asks for bonds to be issued by the facility.

Source: TASR

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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