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Last of 17 Eurozone Nations Approves Boosting Bailout Fund

Last of 17 Eurozone Nations Approves Boosting Bailout Fund

Prime Minister of Slovakia: Iveta Radičová

Slovakian lawmakers on Thursday approved expanding the size and powers of the EU bailout fund, making them the last of the 17 eurozone nations to approve boosting the fund.

The Slovak parliament had rejected the changes to the bailout fund on Tuesday because a junior coalition partner, the center-right Slovakian Freedom and Solidarity party, was against it.

In an effort to force that party to vote in favor, Slovakian Prime Minister Iveta Radicova (herself a member of the Slovak Democratic and Christian Union) had tied the vote on the bailout fund to a confidence vote in the government. When the vote failed, her 1-year-old government collapsed.

The main opposition party, Direction-Social Democracy, a left-leaning group, agreed to help the outgoing coalition approve the expanded fund in a second vote in exchange for early elections.

On Thursday, parliament voted in favor of holding early elections in March, with 143 in favor and 3 against. Just a half hour later, they approved boosting the bailout fund — 114 were in favor, while only 76 votes were needed.

“There is an agreement,” said Erik Tomas, a spokesman for the Direction-Social Democracy party, in a recent The New York Times article. “Smer [Direction-Social Democracy party] agrees to support the financial mechanism and the coalition agrees to elections on March 10.”

“We will proceed with ratification of the bailout mechanism immediately after the constitutional law on early elections is approved,” Robert Fico, a prominent “leftist” and  head of the Direction-Social Democracy party, told reporters.

Last of 17 Eurozone Nations Approves Boosting Bailout Fund

Leader of the left-wing Direction-Social Democracy party: Robert Fico

The timing of the European Financial Stability Facility vote depends on how quickly lawmakers get through the debate and ballot on the early election, said Mikulas Dzurinda, the chairman of Radicova’s party in a Bloomberg article.

“We call upon all parties in the Slovak Parliament to rise above the positioning of short-term politics, and seize the next occasion to ensure a swift adoption of the new agreement,” said a joint statement from José Manuel Barroso, president of the European Commission, and Herman Van Rompuy, the president of the European Council.

As mentioned above, Slovakia is the last of the 17 eurozone nations to approve boosting the bailout €440 billion ($600 billion) fund (the EFSF). The fund will be able to lend quickly to governments before they are in a full-blown crisis and to help them boost banks’ health, reports Bloomberg.

The changes to the bailout fund not only expand it but also give it new powers to “help strengthen Europe’s vulnerable banks.”

As a result of the political move, to agree on a second vote in exchange for early elections, Fico’s leftist party is currently the strongest political force in the country and stands a good chance to win the early ballot in March.

The Associated Press contributed to this story.

Comments (11)

  • Bernard
    Posted on October 14, 2011 at 9:02pm

    In one article in the DRUDGE the US is ready to help in the bail out plan. A big mistake. These Europeans Socialist states have a governance system of cradle to grave social programs that led them to their financial crisis in the first place.
    Just like the Obama government using our taxes to bail out incompetent companies over and over again to the point we are now bankrupt and heading towards nanny state like Europe. If we were to bail out Europe, we may have to borrow from Communist China and instead of bailing out the governments of Europe, we will only be bailing out those hooked on the cradle to grave system that many European governments are. We should first demand that they do away with their socialist system for a Free market system in order to get our borrowed money from Communist China (or print more creating a devaluation of the dollar) before getting a penny from us. see my site asiausavista.org

    Report Post »  
  • dizzyinthedark
    Posted on October 14, 2011 at 8:31am

    New global currency–carbon credits

    The EU nations have accepted the Smart Meters and Smart Grid–they are soon to be completely controlled by their utilities. Sweden citizens complaining of not being able to run their washing machines at a certain time during the day. The machines with imbedded controller chips shut off during their cycle only to be started up again at night (non-peak time) in order for the utilities to ‘save’ energy.

    We need to put an end to Smart Meters unlawfully going onto our homes. Congress needs to stop the $$billions of our tax dollars coming out of the Dept. of Energy being ‘awarded’ to IT companies that have been working on implementing the Smart Grid. The Smart Grid is the final straw for America in this UN agenda to control the world’s energy supply. The Smart Meters need to go onto your homes that read the ‘controller’ chips of your appliances sending this ‘private’ information of what you are doing in the privacy of your own home at any given minute. Without these meters reading your energy output the Smart Grid is useless. They NEED the Smart Meters to be able to continue with their project of ‘total control’. Stop the Smart Meters.

    Report Post » dizzyinthedark  
  • Ron Staiger
    Posted on October 14, 2011 at 7:47am

    I cannot believe that Germany would surrender the economic sovereignty of its Deutchmark for the pipe-dream of the Eurodollar but it did. Now the most powerful economic force in Europe is diminished by the failed socialist policies of its own government as well as all of the other losers in this ill-advised economic experiment. Germany should withdrawal from the EU just as the US should withdrawal from the UN and at least attempt to regain some semblance of a soverieng state responsible only for its own.

    Report Post »  
  • McKenzie Davis
    Posted on October 14, 2011 at 2:16am

    So they have forced Early Elections to impose the will of the Socialist party in the Country!!!!! They have forced out the Government. They have collapsed their Government as well.

    Report Post »  
  • chekmate2
    Posted on October 13, 2011 at 11:21pm

    There is a problem if the Euro fails. Imports have to be paid for. If the Euro fails, what is a German Deutschmark, French Frank, Italian Lira etc… worth? The EU has a population of over 300 million. Imagine waking up and not knowing how much money you have or what it’s worth. There are only two world currencies, the Dollar and the Euro. How would the countries of the EU buy or sell? Who determines the worth of their currencies? What about all of those soon to be worthless Euro’s? Bank accounts would go away! Trade would slow drastically! This would not be a good thing! Also, keep in mind that the Chinese and Russia are trying to destabilize the Dollar. If the Dollar becomes the sole world currency and it falls, world trade comes to a screeching halt. We import nearly 80% of what we use. Until we could bring our own resources on line, it could get really bad. For example: How would we pay for oil or the food we import in the winter? This is not something to be happy about. Hopefully, the Europeans will get it together as the US no longer has the money to bail them out.

    Report Post » chekmate2  
    • reform
      Posted on October 14, 2011 at 8:12am

      You don’t see it as the way forward for what they really want? The dollar is next on their list wake up!!!! We in this country must remain strong now more than ever.

      Report Post »  
  • chicago76
    Posted on October 13, 2011 at 10:02pm

    These socialists are as brain-dead as their policies. No wonder all these European countries are turning muslim, they think they can create money out of the desert.

    Report Post »  
  • Snowleopard {gallery of cat folks}
    Posted on October 13, 2011 at 6:31pm

    Now we have seen history truly made, the final economic death knell for the EU has been signed and is soon to be sung for all to hear.

    Report Post » Snowleopard {gallery of cat folks}  
    • db321
      Posted on October 14, 2011 at 1:13am

      Hurry up and sign it so the Libs in office can go out and spend the surplus. Just don’t tell me that G. Soros will prophet again.

      Report Post » db321  
  • RightPolitically
    Posted on October 13, 2011 at 5:43pm

    It will GO BUST!

    Report Post » RightPolitically  
    • CulperGang
      Posted on October 14, 2011 at 10:57am

      yup, but it will drag the ppopulous down first, making the elites filthy rich. THAT is the objective of the EU…..all along. The dismatled greece and greece is selling off islands to pay its debt. guess who is buying the islands……the only ones who can afford it the ultra rich bankers……..money changers….hedgefund managers

      Report Post » CulperGang  

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