BRATISLAVA, March 23, (WEBNOVINY) – The Iveta Radicova Cabinet approved a draft European Council decision about the euro zone’s stability mechanism Wednesday. The permanent European Stability Mechanism is supposed to replace the existing temporary European Financial Stability Facility in the middle of 2013. The approval authorizes Prime Minister Iveta Radicova to vote for the change in the treaty to enable the establishment of the new rescue vehicle. The European Council is slated to debate the proposal on March 24-25. The decision ratification will be subject to the subsequent approval of Slovak Parliament.
The approval of the draft decision was motivated by interest in securing the euro’s stability, one of the priorities of Slovakia’s foreign policy. This move fully complies with Slovakia’s commitments ensuing from international law, reads material compiled by the Foreign Affairs Ministry.
After the Council approves the decision, it will require a nod from EU member states. In the context of the local legal system, the decision will be submitted to the Cabinet and then to Parliament. The Constitution of the Slovak Republic states that the approval of the European Council decision requires support of an absolute majority in Parliament. The process has to be finalized by late 2012 because the decision’s coming into force is set for January 1, 2013. The decision will be debated by Slovak MPs as an international treaty whose execution does not require introduction of new legislation.
Contributions by countries to the new fund are based on new rules. It was Slovak Finance Minister Ivan Miklos who initiated the changes in talks in Brussels. Slovakia’s share will drop almost 17 percent from its participation in the existing facility.
SITA