BRATISLAVA, July 25, (WEBNOVINY) – A liberal member of Slovakia’s ruling coalition, the party SaS does not support the decision of euro zone leaders on the measures intended to help the ailing Greece. As SaS Chairman Richard Sulik told a news conference on Monday, the approach which was agreed upon last Thursday does not resolve the Greek problem but only postpones its resolving. “It is a fraud on European taxpayers,” Sulik stated. He reminded of the plan of Finance Minister Ivan Miklos who intended to fight in Brussels for the participation of the private sector in the bailout for Greece, the collateral, the International Monetary Fund (IMF) participation, the agreement of Greek political parties and the privatization of the country’s state-owned companies.
SaS, however, claim that the result does not correspond with this position. Sulik says that the amount of aid proposed is the same as originally planned, but the declaration brought home from Brussels does no contain a single word on the political agreement and the collateral while the privatization is only mentioned “as a general babbling”. “They approved a loan worth 109 billion euros, but it will only be financed by IMF and European taxpayers,” Sulik claims.
Sulik also said that according to original plans, Slovakia was to participate with some 350 million euros, yet the only sum that corresponds with what was said is the EUR 109 billion loan. It is not clear how much IMF will contribute, but if its share is the same as in the first bailout, then it should be closely below 30 billion euros. It indicates that Slovakia would contribute over EUR 800 million, equaling 400 euros per household. “We should not wonder then that we spend little money on education and highways, when we subsidize Greek pensions and redundant Greek civil servants with huge sums,” Sulik said. Still, he considers participation of the private sector to be a greater problem, together with socializing debts. “One state produces huge debts as they have irresponsible politicians who, in order to get elected, promise their voters double pensions, give the civil servants thirteenth and fourteenth salaries. But when this state has no money to repay its debts, the uncle from Brussels comes and distributes these debts among all euro zone states,” Sulik explains his party’s position.
Finance Ministry’s spokesman Martin Jaros said Sulik’s statements were premature. He, however, thinks that what was agreed upon last Thursday in Brussels was a more ambitious plan than originally expected, which surprised financial markets positively with a broad participation of the private sector being part of the plan.
Sulik however does not plan to leave the coalition over the issue, yet he claims the coalition will not be united on it. He therefore counts on SMER-SD Chairman Robert Fico who earlier claimed that his party will not support grossing up European financial mechanisms unless the coalition would be unanimous on the issue.
SITA