The guarantees provided by Slovakia within the EFSF bailout mechanism should be increased from €4.371 billion to €7.727 billion, according to a proposal approved by the government on Wednesday, September 28. The Slovak government at the same time recommended that parliament deal with the change via fast-tracked legislative proceedings. However, the government still appears to lack enough votes in parliament to push the measure through, given the opposition of one of the coalition parties, Freedom and Solidarity (SaS).
"If Slovakia doesn't adopt the necessary legislation in the shortest time possible, it could endanger the whole mechanism of financial stabilisation assistance," said Finance Minister Ivan Mikloš, as quoted by the TASR newswire. In arguing his case, he pointed out that delay could have a considerable impact on the international commitments adopted by Slovakia as part of its eurozone membership. The EFSF will have a direct impact on Slovakia's budget if the countries that are lent money via the EFSF are later unable to repay it.
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29. Sep 2011 at 10:00