BRATISLAVA, October 29, (WEBNOVINY) — EU heads of state and prime ministers of the member countries agreed upon the need to establish an emergency mechanism to enforce stability of the euro zone at their summit in Brussels. Slovak Prime Minister Iveta Radicova considers the fact, that the key elements of the mechanism should define the role of the private sector, the International Monetary Fund and very strict conditions for its functioning to be a success. “It’s extremely important that such mechanism would reduce the risks of moral hazard and through a procedure of a controlled default of a country define the liability of the private sector, which primarily means financial institutions,” the Prime Minister said.
The European Council appealed to the Council President Herman van Rompuy to consult the member states on a small change in the Lisbon Treaty, which however would not alter Article 125 – the co-called no bail-out clause. “It is in full accordance with our argumentation that we first need to know the factual content of a permanent emergency mechanism and then solve the issue of limited changes in primary EU legislation,” added Radicova. The European Council will continue dealing with this issue at the December summit and adopt a final solution on the concept of an emergency mechanism and on small changes in the Lisbon Treaty.
Radicova considers one of the summit’s conclusions to be a great success for Slovakia – according to it the EU Finance Ministers and the European Commission have to work faster on how to account the second pillar pension expenses when dealing with the Stability and Growth Pact. The report will be submitted to the European Council in December. The Council “recognizes the importance of pension system reforms,” is in the summit conclusions. The Stability and Growth Pact has to create sufficient space for them. “It is a proof that when we really do negotiate on the Growth and Stability Pact, we are able of achieving considerable outcomes,” she emphasized.
SITA received the information from the Cabinet Office’s Press and Information Bureau.
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