BRUSSELS, June 24, (WEBNOVINY) – Slovak Prime Minister Iveta Radicova thinks that opening up issues regarding increasing the guarantees in the existing temporary bailout fund created by euro zone members to help indebted countries is not appropriate at the moment. The prime minister took part in the European Council meeting in Brussels where EU leaders approved the creation of a permanent euro zone bailout fund from June 2013 as well a strengthening of the existing temporary rescue fund.
Radicova said that the framework agreement on the European Financial Stability Facility (EFSF) was approved in Slovak Parliament by both the coalition and the opposition. By strengthening the capacity of the current bailout fund Slovakia is only to meet its commitment. Radicova reacted to statements of SaS leader and Speaker of Parliament Richard Sulik whose party wants to curb the government’s mandate in expanding guarantees so that the respective agreement can be signed only after determining the participation of the private sector in further bailout to Greece. According to the SaS leader, that basically means the country’s regulated default, which he finds inevitable in the current situation.
“If MPs will have problems with keeping the obligation, which means providing such guarantees that we will able to fulfill the agreed upon sum, then it would be at odds with what they approved before,” Radicova said in Brussels. She added that she is patiently trying to explain legal, international; and other consequences of Slovakia’s possible failure to support increasing guarantees in the existing bailout fund in parliament. The prime minister also stated that to speak of possible further steps would be premature at the moment.
The Slovak prime minister also said that Slovakia will not obstruct the creation of a new permanent European Stability Mechanism (ESM). The finance minister got a mandate from the government to sign the framework agreement and thus enable to start the ratification process also in other euro zone countries. The prime minister thinks that there is enough time to discuss parliamentary voting on Slovakia’s participation in following months. “Signing this agreement is the condition for other countries to be able to start ratification. The Slovak Republic will not be a barrier or obstacle in the way of ratification process in other countries. Therefore the Cabinet has given a mandate to the finance minister to sign this agreement. We have about a year and a half to debate how parliament will subsequently proceed,” said the prime minister.
SITA
