Sunday

16th Jun 2019

Slovenia: EU bail-out ratification in danger

  • Slovenia's Adriatic seafront: The ratification vote 'could be a problem' Raflak said (Photo: robertivanc)

Slovenian MPs can still vote on the second Greek bail-out and beefed-up euro rescue fund, the EFSF, despite the fall of the government, but getting them to vote Yes "could be a problem."

Barbara Reflak, foreign policy advisor to centre-left caretaker prime minister Borut Pahor, who was defenestrated in a no-confidence vote on Tuesday, told EUobserver on Wednesday (21 September) that parliament will still vote on the measures as planned on 27 September.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

She added that a positive result is far from a safe bet, however.

"When the finance committee met yesterday [to vote on the measures], it was very tight. They got through by seven votes pro and six against ... We already had a minority government and the whole opposition is against it," she said.

Noting that Slovenia is cutting pensions in its own austerity plan, she went on: "It's very hard for MPs and ordinary people to understand why we have to make cuts in our own budget and on the other hand we are giving a second bail-out to Greece. And we keep reading in the papers that they don't conform to [austerity] programmes."

"The government says we need a stable eurozone and that this is in Slovenia's interest. That's our message, but it's a difficult one to promote right now. It [the vote] could be a problem."

The latest scare for markets watching whether the EU will get its act together on the financial crisis comes after Pahor lost the confidence vote by 51 to 36 amid discontent over pensions reforms and corrruption allegations.

The development immediately saw Slovenian bonds become more pricey compared to German ones and the country's stock exchange, the Sbitop, drop almost one percent.

The likely new leader, who could take over in snap elections in December, centre-right politician Janez Jansa, has in the past said the Greek bail-out "isn't fair" because Greek workers earn more than Slovenian ones.

Slovenia - together with Austria, Finland, Malta and the Netherlands - is also seeking Greek collateral for any fresh loans, further complicating the ratification process, which requires all 17 eurozone members to pass the measures before they enter into life.

The Slovenian scare comes on top of problems in Austria, where the parliament's finance committee has delayed the EU bail-out bill, and Slovakia, where a junior coalition partner has come out against it.

This story was changed at 12pm Brussels time on 22 September. The original version said the no confidence vote was "over pensions reforms and corruption allegations." In fact, the technical reason was the appointment of five new ministers. But the pensions and corruption issues contributed to the result

EU finance chiefs cool on Geithner plan for eurozone

A unprecedented visit by US treasury secretary Timothy Geithner to a meeting of European finance ministers in Poland was coolly received by the gathered European economy chiefs, while the meeting itself saw little advance made on how the eurozone can deal with its ever-deteriorating debt crisis.

EU top court backs Canada trade deal in ruling

The European Court of Justice ruled on Tuesday that the EU-Canada free trade agreement, and its controversial dispute settlement mechanism, is in line with the bloc's rules.

EU and Japan in delicate trade talks

The Japanese PM comes to Brussels to discuss the first results of the new EU-Japan free trade deal, plus WTO reform - a sensitive topic before he moves onto Washington to face Donald Trump.

News in Brief

  1. EU plans to restructure eurozone bonds
  2. EU ups US imports in beef deal
  3. Unicef: UK among 'least family-friendly' in Europe
  4. Czech PM: No joint 'V4' candidate in commission race
  5. Johnson tops first round to replace May, three eliminated
  6. Bratislava will host new European Labour Authority
  7. Juncker cautions against further climate goals
  8. Study: Counterfeit medicine is a 'growing threat' in EU

Feature

Romania enlists priests to promote euro switchover plan

Romania is due to join the single currency in 2024 - despite currently only meeting one of the four criteria. Now the government in Bucharest is enlisting an unlikely ally to promote the euro to the public: the clergy.

Trump and Kurz: not best friends, after all

The visit of Austrian chancellor Sebastian Kurz to the White House on Wednesday showed that the current rift in transatlantic relations is deepening by the day.

Stakeholders' Highlights

  1. Nordic Council of MinistersNo evidence that social media are harmful to young people
  2. Nordic Council of MinistersCanada to host the joint Nordic cultural initiative 2021
  3. Vote for the EU Sutainable Energy AwardsCast your vote for your favourite EUSEW Award finalist. You choose the winner of 2019 Citizen’s Award.
  4. Nordic Council of MinistersEducation gets refugees into work
  5. Counter BalanceSign the petition to help reform the EU’s Bank
  6. UNICEFChild rights organisations encourage candidates for EU elections to become Child Rights Champions
  7. UNESDAUNESDA Outlines 2019-2024 Aspirations: Sustainability, Responsibility, Competitiveness
  8. Counter BalanceRecord citizens’ input to EU bank’s consultation calls on EIB to abandon fossil fuels
  9. International Partnership for Human RightsAnnual EU-Turkmenistan Human Rights Dialogue takes place in Ashgabat
  10. Nordic Council of MinistersNew campaign: spot, capture and share Traces of North
  11. Nordic Council of MinistersLeading Nordic candidates go head-to-head in EU election debate
  12. Nordic Council of MinistersNew Secretary General: Nordic co-operation must benefit everybody

Latest News

  1. 'Russian sources' targeted EU elections with disinformation
  2. Top EU jobs summit dominates This WEEK
  3. EP parties planning 'coalition agenda' ahead of jobs summit
  4. MEP blasts Portugal over football whistleblower
  5. Catalonia MEPs are a judicial, not political, issue
  6. Meet the lawyer taking the EU migration policy to the ICC
  7. Europe's oil supplies 'at risk' after tanker attacks
  8. EU paths fork for Albania and North Macedonia

Join EUobserver

Support quality EU news

Join us