Wednesday

28th Sep 2016

Slovakia may hold up eurozone rescue fund

  • Slovakia is expected to contribute as its share of the bail-out some €816 million over the next three years (Photo: formulaphoto)

The emerging new leadership in Slovakia has said the country will not contribute its share of the €110 billion rescue package for Greece. In addition, Bratislava is likely not to add its signature to the €750 billion eurozone support mechanism - something that could put the entire project on ice.

Sources say that by Wednesday (16 June), all countries sharing the single currency are expected to have signed the so-called Framework Agreement on the European Financial Stability Facility (EFSF), a legal instrument agreed by finance ministers earlier this month following the risk of Greece's debt crisis spreading to other weak economies.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

"It would be a serious blow to the EFSF and the euro area's ability to stand behind its members [if a member does not sign]," a senior eurozone official told this website.

He explained that all 16 signatures on the document - which specifies provisions on how to issue loan guarantees if necessary - are required to bring the emergency mechanism to life.

The cabinet of outgoing social democratic Prime Minister Robert Fico, who will not return to power after last weekend's elections, has decided to leave the sensitive issue to his successor after EU bail-out plans featured prominently in the campaign.

Conservative politician Iveta Radicova, the likely next prime minister, described the bloc's €750 billion rescue fund during the pre-election debates as "bad, dangerous and [the] worst possible solution."

On Tuesday (15 June), Ms Radicova also re-iterated that she is against Slovakia providing any financial support to Greece.

"In a situation when we must deal with floods, [when] we do not have enough resources and the use of European funds is insufficient ... we will primarily channel resources to solving flood consequences, and that is how I will present it during talks in Brussels," she told press, shortly after four centre-right parties signed a declaration on political co-operation that should result in a new government.

Slovakia is expected to contribute some €816 million over the next three years as its share of the Greece bail-out scheme - a figure reportedly amounting to the annual budget of the country's interior ministry.

Previously, the newest eurozone member state had been content to sign the so-called inter-creditor agreement that paved the way for Athens to receive the first tranche of the loan - €80 billion from the euro area and €30 billion from the International Monetary Fund.

The deal still needs the approval of the Slovak parliament, however.

Investigation

Diesel cars still dirty, despite huge EU loans

The European Investment Bank lent billions to carmakers, in part to clean up diesel cars. But diesel cars are still dirty, prompting questions if the money was well spent.

EU redoubles attack on roaming charges

After an embarrassing U-turn last week, the EU commission has proposed to abolish roaming charges by June next year. Only "abusive" clients to pay.

Stakeholders' Highlights

  1. GoogleDid You Know Europe's Largest Dinosaur Gallery Is in Brussels? Check It Out Now
  2. IPHRHuman Rights in Uzbekistan After Karimov - Joint Statement
  3. CISPECloud Infrastructure Providers Unveil Data Protection Code of Conduct
  4. EFAMessages of Hope From the Basque Country and Galicia
  5. Access NowDigital Rights Heroes and Villains. See Who Protects Your Rights, Who Wants to Take Them Away
  6. Martens CentreQuo Vadis Georgia? What to Expect From the Parliamentary Elections. Debate on 29 September
  7. EJCAppalled by Recommendation to Remove Hamas From EU Terrorism Watch List
  8. GoogleBringing Education to Refugees in Lebanon With the Clooney Foundation for Justice
  9. HuaweiAn Industry-leading ICT Solution Provider and Building a Better World
  10. World VisionUN Refugees Meeting a Wasted Opportunity to Improve the Lives of Millions of Children
  11. Belgrade Security ForumCan Democracy Survive Global Disorder?
  12. GoogleTrimming the Waste-Line: Weaving Circular Economy Principles Into Our Operations