Monday

20th Feb 2017

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.

EU ready to challenge US border tax

The EU is willing to fight any attempt by the Trump administration to impose border tax on imports, says trade commissioner Jyrki Katainen.

US picks new fight with Merkel

The new US administration has once again antagonised Germany, this time by accusing it of currency manipulation.

Visual Data

EU farming policy: The damage done by 20 years of inertia

The EU Commission will ask the public later this week how the common agricultural policy should be overhauled. Data from the past two decades reveals a catalogue of missed chances and failed reforms.

Opinion

Unfair EU-Canada trade deal is wrong response to Trump

The EU-Canada trade deal, which is to be voted on in the European Parliament next week, cements the inequalities, political exclusion and favours to corporations that feed far-right groups in Europe.

Visual Data

EU farming policy: The damage done by 20 years of inertia

The EU Commission will ask the public later this week how the common agricultural policy should be overhauled. Data from the past two decades reveals a catalogue of missed chances and failed reforms.

Stakeholders' Highlights

  1. Malta EU 2017End of Roaming Fees: Council Reaches Agreement on Wholesale Caps
  2. Nordic Council of MinistersNordic Innovation House Opens in New York to Help Startups Access US Market
  3. Centre Maurits CoppietersMinorities and Migrations
  4. Salzburg Global SeminarThe Child in the City: Health, Parks and Play
  5. UNICEFNumber of Ukrainian Children Needing Aid Nearly Doubles to 1 Million Over the Past Year
  6. Centre Maurits CoppietersThe Situation of Refugee Women in Europe
  7. Salzburg Global SeminarToward a Shared Culture of Health: Charting the Patient-Clinician Relationship
  8. European Free AllianceAustria Should Preserve & Promote Bilingual and Multinational Carinthia
  9. Martens CentreShow Your Love for Democracy! Take Part in Our Contest: "If It's Broken, Let's Fix It"
  10. CISPECloud Computing Leaders Establish Data Protection Standards to Protect Customer Data
  11. Malta EU 2017Landmark Deal Reached With European Parliament on Portability of Online Content
  12. Belgrade Security ForumBSF 2017: Building a Common Future in the Age of Uncertainty