BRUSSELS/BRATISLAVA, June 24, (WEBNOVINY) — Time has confirmed Slovakia was right not to lend to Greece through the first bilateral loans program, claims Slovak Prime Minister Iveta Radicova. She said Slovakia’s opinion was confirmed at the first day of negotiations at the European Council in Brussels by the direction of current developments in Greece. The country was unable to reduce its spending sufficiently and it is now in a worse condition than a year ago, and pouring money in the first bilateral loans only increases the debt. In hew opinion, the more important now is the necessity to comply with clear rules of fiscal consolidation and reforms in the euro area and the EU.
„The Slovak Republic has made a correct decision. Greeks have not made any real savings. All measures they undertook can possibly bring savings in the future. They have not made any deep structural reforms, therefore, Greece must submit a new program,“ she said. European leaders on Thursday noted they are ready to help Greece with the reforms, and also Slovakia can share its experience, said Radicova. „We are all willing and ready to help with reform programs in those areas that we have tested ourselves. Of course, also Slovakia, I phoned about it the day before yesterday with the Greek prime minister,“ she said. However, everything essential is now in the hands of the Greek parliament, which until the end of June will be discussing matters important for a decision to release the next tranche of the international bailout package.
Radicova at the same time reiterated that the current development is by far not just about Greece and its problems. It is important to prevent a similar situation repeating in some other countries. Therefore, EU leaders on Thursday agreed on the need for consolidation of public budgets across the EU and a strong need to adhere to established rules. A stabilization mechanism is required to ensure stability, according to the Slovak prime minister. „It is our duty to prevent an unregulated and spontaneous collapse of some country or euro area or the European Union, because it is closer to us than was Lehman Brothers,“ she said.
Therefore, if currently Europe is deciding on establishing a European Stabilization Mechanism (ESM), it is also deciding about fate of Slovaks. If the debt crisis spills over, many would lose their jobs just as they did after the outbreak of global financial crisis. „If today we are deciding what to do next, we are also deciding about jobs in Slovakia. I suppose nobody wants problems now on our continent to reflect in a four-day working week or full-scale job loss,” she said.
SITA
