SLOVAKIA: Parliament bring down the government by rejecting a plan to expand the euro zone's EFSF rescue fund

Record ID: 327627

  • Title: SLOVAKIA: Parliament bring down the government by rejecting a plan to expand the euro zone's EFSF rescue fund
  • Date: 12th October 2011
  • Summary: BRATISLAVA, SLOVAKIA (OCTOBER 11, 2011) (REUTERS) PARLIAMENT IN SESSION/ (SOUNDBITE) (Slovak) IVAN MIKLOS SAYING: "(The) situation is serious not only in Slovakia or in Europe, but all around the world." SLOVAK PRIME MINISTER IVETA RADICOVA LISTENING (SOUNDBITE) (Slovak) FINANCE MINISTER IVAN MIKLOS SAYING: "Now we are deciding if Europe will have stronger EFSF against the new global financial and economic crisis." MEDIA/ RICHARD SULIK LISTENING (SOUNDBITE) (Slovak) SMER PARTY LEADER ROBERT FICO SAYING: "You are sticking roasted knife into each other's kidneys in the coalition." DEPUTIES DISCUSSING (SOUNDBITE) (Slovak) SMER PARTY LEADER ROBERT FICO SAYING: "All the responsibility has governmental coalition which has easy majority in the parliament and they can not get rid of this responsibility by excuse of various point of view inside the coalition." SMER PARTY MEMBERS CLAPPING PARLIAMENT HALL BEFORE VOTING SPEAKER ANNOUNCING THE VOTE SLOVAK PRIME MINISTER IVETA RADICOVA DISCUSSING WITH FOREIGN MINISTER MIKULAS DZURINDA (FORMER PRIME MINISTER) VOTE SCREEN WITH RESULTS RADICOVA SHAKING HANDS WITH KDH (CHRISTIAN DEMOCRATIC PARTY) LEADER JAN FIGEL JOURNALISTS AT NEWS CONFERENCE AWAITING COALITION LEADERS NEWS CONFERENCE (SOUNDBITE) (Slovak) PRIME MINISTER IVETA RADICOVA SAYING: "No one prime minister can sign under this (vote result), because he knows as well as my coalition partner knows, that the Slovak Republic has the only chance - for our citizens - how to pass over the painful period of a deep crisis. It is possible only in cooperation and in partnership with our friendly and partner states (means EU countries)." JOURNALISTS (SOUNDBITE) (Slovak) DEPUTY SPEAKER BELA BUGAR SAYING: "Now we will discuss the possibilities how to support EFSF, so that it is approved by the parliament as soon as possible." JOURNALISTS AT NEWS CONFERENCE (SOUNDBITE) (English) KDH (CHRISTIAN DEMOCRATIC PARTY) LEADER JAN FIGEL SAYING: "I want to assure you that our understanding of freedom goes together with solidarity and responsibility. And we will do our utmost to find an agreement and solution in order to move together with Eurozone countries for more stable euro and more credible financial policy in Europe." JOURNALISTS MAKING NOTES COALITION PARTY LEADERS LEAVING
  • Embargoed: 27th October 2011 13:00
  • Keywords:
  • Location: Slovakia, Slovakia
  • Country: Slovakia
  • Topics: Politics
  • Reuters ID: LVA62WZG0V7S78LO8FGBUJ7SMVF2
  • Story Text: Slovakia's parliament on Tuesday (October 11) brought down the government by rejecting a plan to expand the euro zone's EFSF rescue fund, crucial to containing a spreading debt crisis.
    However, the outgoing finance minister, Ivan Miklos, said the plan could still be approved by the end of the week.
    Prime Minister Iveta Radicova had made the issue into a vote of confidence to try to prevent one of her coalition partners, the liberal Freedom and Solidarity (SaS) party, from opposing the EFSF, but in vain.
    The count showed 55 votes in favour and nine against out of a chamber of 150 deputies. The remainder, including the SaS deputies, were absent or did not register a vote, and a majority of all seats was required for the motion to pass.
    Radicova is expected to call another vote that is likely to pass comfortably with the support of the main opposition party, Smer, which had demanded a reshuffle or resignation as the price for its support.
    Slovakia is the only euro zone member yet to ratify the deal.
    The prospect of further delays to the ratification of expanded powers for the European Financial Stability Facility (EFSF) hit markets already under pressure from signs that the crisis is spilling beyond Greece's borders.
    Even as Slovakia wrangles over the July agreement, euro zone leaders are scrambling to give the 440 billion euro safety net even greater clout.
    The leftist opposition Smer party has repeatedly said it supports the EFSF plan in principle and is ready to discuss backing it once the government is out of office.
    A senior Smer official said he believed a new vote would be held "as soon as possible".
    The SaS had argued that, as one of the poorest members of the single currency club, Slovakia should not pay for debts racked up by richer countries.
    While Slovakia has been dragging its feet, euro zone leaders are discussing further action.
    Germany and France, the leading powers in the bloc, have promised to propose a comprehensive strategy to fight the debt crisis at the EU summit, and there is a growing acceptance that a second Greek bailout agreed in July along with the EFSF expansion may not be sufficient.
    A rush is now on to further beef up the rescue fund and shore up banks. European Central Bank President Jean Claude Trichet said on Tuesday the crisis had become systemic and could threaten global economic stability.
    The EFSF agreement is intended to increase its coffers, allow it to buy bonds from the market to support countries under attack, bail out members who need funding and help them prop up failing banks.
    Assuming Slovakia's parliament does eventually ratify the EFSF, lawmakers must adjust domestic legislation to implement the deal -- an issue analysts say should not pose a problem once Radicova secures the necessary support.
    Radicova said last week she was personally committed to ratifying the agreement by Oct. 14 ahead of a meeting of euro zone leaders -- which has now been pushed back by a week to Oct. 23.
    Under the constitution, she will now have to resign but will stay in office until a new administration is in place.
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