FRANKFURT (MNI) – The Slovak Parliament on Tuesday did not ratify
plans to boost the European bailout fund EFSF but a second vote with
stronger chances of passing the bill is likely to follow within days.
The rejection of the bill had been widely excepted after a junior
Slovak ruling coalition member, Freedom and Solidarity (SaS), said it
will abstain from the vote in reaction to Prime Minister Iveta
Radicova’s decision to tie the vote to a no-confidence motion.
95 parliamentarians voted against proposed changes, while 55 gave a
green light for a reform that would boost the EFSF’s capacity to E440
billion and offer it more flexible tools such as the right to buy
government bonds on the secondary market.
The exact timing of a second vote is unclear, but should come
within a few days following negotiations between government and the
opposition parties, a Slovak government source told Market News
International.
“I don’t think there will be the need for a formal new government,”
the source said. A “no” vote would likely lead to talks between the
current government coalition and the opposition the next day. “I think
that a vote in favour of the EFSF will be done as quickly as possible,”
the source said.
A failure to pass the bill eventually could derail the Eurozone’s
latest plans for fighting the raging debt crisis by using EFSF funds to
help recapitalize banks and ringfence other sovereigns from Greek
troubles.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com —
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