The Freedom and Solidarity (SaS) party, a member of the four-party governing coalition in Slovakia, has rejected changes to the European Financial Stability Facility (EFSF) agreed upon by European leaders, SaS chair Richard Sulík confirmed after a meeting with Prime Minister Iveta Radičová on August 8, the TASR newswire reported.
The change in the rules and an increase in the resources for the EFSF must be approved by the Slovak parliament, which will be difficult for the governing coalition without votes from SaS.
"We consider these mechanisms to be counter-productive tools. They would put Slovakia in debt for a long time. We view this as an attempt to put out a fire with a fan," said Sulík to TASR. He added that even financial markets view the repeated intervention of the eurozone on behalf of individual problematic countries as a weakness. Even though Slovakia might become the first country to reject changes to EFSF, Sulík does not think it would be the only country to do so.
SaS also has reservations about the more flexible rules for the operation of the EFSF that would allow the mechanism to buy bonds of problematic countries.
"This would pave the way for a debt union, a straight road to complete socialism. It would be like the Soviet Union all over again. The Soviet Union had 15 republics, the EU will have 27," Sulík said, stressing that Slovakia had not entered into such a union. Sulik also criticised the recent decision made by the European Central Bank (ECB) to buy Italian and Spanish bonds.
"We in SaS will do everything so that it [the proposal] does not pass in parliament," Sulík said, as quoted by the SITA newswire, adding that it is not a valid argument that default by some countries could cause a recession. "Okay, let GDP decline for two quarters in a row. But it's worth the billions that would have gone from Slovakia," he stated.
Radicová announced she wants to discuss the current situation in the eurozone and the future stability of the common European currency with President Ivan Gašparovič as well as other representatives of both ruling coalition and opposition parties. She believes that talks aimed at
coming to as much agreement as possible in the common interest of Slovakia could be held sometime this month.
Source: TASR, SITA
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
9. Aug 2011 at 10:00