EU heads of state and prime ministers of the member countries agreed upon the need to establish an emergency mechanism to enforce stability of the eurozone at their summit in Brussels and Slovak Prime Minister Iveta Radičová considers that the key elements of the mechanism in defining the role of the private sector, the International Monetary Fund and the mechanism’s very strict conditions to be a success, the SITA newswire reported.
"It's extremely important that such mechanism would reduce the risks of moral hazard and through a procedure of a controlled default of a country define the liability of the private sector, which primarily means financial institutions," the Prime Minister told SITA on October 29.
She considers one of the summit's conclusions to be a great success for Slovakia – EU Finance Ministers and the European Commission have to work faster on how to account for second pillar pension expenses when meeting the criteria of the Stability and Growth Pact.
The report will be submitted to the European Council in December. The Council "recognises the importance of pension system reforms," read one of the summit conclusions. The Stability and Growth Pact has to create sufficient space for them. "It is a proof that when we really do negotiate on the Growth and Stability Pact, we are able of achieving considerable outcomes," the prime minister emphasised.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
2. Nov 2010 at 14:00