Monday

16th May 2022

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.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"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.

Revealed: Big Oil shaped EU's gas-cutting strategy

Internal documents found EU Commission president Ursula von der Leyen and energy commissioner Kadri Simson coordinated their Russian gas cutting strategy with oil CEOs to determine which measures were "feasible".

Lagarde signals summer interest rate hike

European Central Bank president Christine Lagarde signalled an interest rate increase possibly as early as July, but some experts warn for a repeat of the 2011-2012 debt crisis.

Lagarde signals summer interest rate hike

European Central Bank president Christine Lagarde signalled an interest rate increase possibly as early as July, but some experts warn for a repeat of the 2011-2012 debt crisis.

News in Brief

  1. German ruling party in regional election blow
  2. EU expanding arms-for-Ukraine programme
  3. Reports: EU drafts plans for Russia energy payments
  4. Pro-Russian hackers targeted Eurovision
  5. EU to donate extra €400m for Africa vaccines rollout
  6. Spain plans five-days 'menstrual leave' and to ease abortion rules
  7. MEPs reject proposal for stricter 2030 target on cars and vans
  8. Study: EU spent €341m on AI border technology

Stakeholders' Highlights

  1. Nordic Council of MinistersClear to proceed - green shipping corridors in the Nordic Region
  2. Nordic Council of MinistersNordic ministers agree on international climate commitments
  3. UNESDA - SOFT DRINKS EUROPEEfficient waste collection schemes, closed-loop recycling and access to recycled content are crucial to transition to a circular economy in Europe
  4. UiPathNo digital future for the EU without Intelligent Automation? Online briefing Link
  5. Nordic Council of MinistersHuge support for Ukraine
  6. EFBWW – EFBH – FETBBWorkers want EC to limit subcontracting chains in construction

Latest News

  1. Sweden to join Finland in applying for Nato
  2. Russia sanctions and energy dominate Next WEEK
  3. Will 'Putin's Nato' follow Warsaw Pact into obscurity?
  4. EU reaches deal on flagship cybersecurity law
  5. EU to help Ukraine export grain — amid food shortages fears
  6. Revealed: Big Oil shaped EU's gas-cutting strategy
  7. EU: Ukrainians hesitating to register for protection
  8. UK says 'no choice but to act' over post-Brexit trade rules

Join EUobserver

Support quality EU news

Join us