BRATISLAVA, October 10, (WEBNOVINY) — Slovak employers support the ratification of the extension of the capacity and functionality of the so-called interim bailout fund (EFSF). They believe that parliament’s ‘no’ to the bailout fund would be hazardous for Slovakia. “Currently, when Slovakia is the last country for which everyone waits before it will be possible to launch the system, it could be absolutely irresponsible and hazardous for Slovakia if the bailout fund extension does not go through,” said executive director of Club 500 [associating companies with five hundred and more employees — SITA new] Tibor Gregor.
At the current stage of the ratification process, it is useless to reopen principles and mechanisms of the bailout fund as such according to Gregor. The President of the Slovak Chamber of Commerce and Industry (SOPK) Peter Mihok says that Slovakia should realize that the euro is its currency and it costs some money to keep the currency stable. Also the President of the Federation of Employers‘ Associations of the Slovak Republic (AZZZ), Tomas Malatinsky, wants Slovak lawmakers to ratify the bailout fund changes. He emphasized that the current problems of the euro are also Slovak problems. The only organization clustering employers that is not unambiguous about the changes to the bailout fund is the National Association of Employers (RUZ). Its members are aware of Slovakia’s situation after other eurozone members approved the changes, said RUZ head Jozef Spirko but there exist some risks related to the increased bailout fund capacity.
The Association of Towns and Villages of Slovakia (ZMOS) strongly opposes ideas of a potential rejection of the extended European Financial Stability Facility (EFSF). The association believes that a refusal to ratify the bailout fund extension would threaten inter-regional solidarity, which is one of the fundaments and basic principals of the European Union, besides posing economic and financial risks. ZMOS therefore calls on the Slovak Parliament to assume a responsible approach and carefully assess possible consequences of not adopting the mechanism and vote for the bailout fund. “The Slovak Cabinet and parliament could thus display their genuine responsibility towards the eurozone,” said ZMOS Chairman Jozef Dvonc.
Three coalition parties SDKU-DS, KDH and MOST-HID will attempt to reach an agreement with the junior neoliberal member of the ruling coalition, the SaS party, at the Coalition Council’s meeting on Monday on its support to the extension of the European Financial Stability Facility (FNM) during the parliamentary vote on Tuesday. According to the information that SITA has acquired, the three coalition parties offer the SaS that Slovakia decides separately on each single sum for the extended bailout fund and also that each party will have the right of veto in the decision-making. If coalition leaders fail to reach an agreement on Monday the SDKU-DS will probably propose to merge the vote on the bailout fund with a vote of confidence in the government. However, the party presidium has yet to okay such solution, which would subsequently end up on the Cabinet’s table. “If Iveta Radicova suggests it, we will support her proposal,” said KDH Deputy Chairman Pavol Abrhan.
The Coalition Council is meeting over the extension of the EFSF later on Monday. The SaS still refuses to support the EFSF extension in its current form and the establishment of its replacement, a permanent rescue fund, the so-called European Stability Mechanism (ESM). The party of Richard Sulik conditions its support to the EFSF extension on the obligation of its coalition members to not support the establishment of ESM. The three coalition parties however turned down the proposal as they are willing to discuss only the approval procedure of releasing money for the extended EFSF. Prime Minister Iveta Radicova is believed to have come up with a new compromising proposal for the SaS over this weekend. The coalition leaders will meet at 4 p.m.
SITA