Member Article

Slovakia blocks Greek rescue fund

The Slovakian government has blocked plans to expand the European bailout plans, although international lenders are still expected to give Greece a loan next month.

According to Reuters, Slovakia is the only country not to agree to grant the European Financial Stability Fund further powers.

Each country in the eurozone agreed to the terms of the EFSF in July, but it must be ratified by each member state.

Yesterday Slovak Prime Minister Iveta Radicova’s government fell, after a small faction of her coalition refused to back plans.

The outgoing government still hopes to ratify the measure by the end of the week with support from an opposition party. However this issue further highlights how difficult it can be to create a united response to the increasing severity of the debt crisis.

Voters in eurozone countries are becoming angry over the increasing cost of bailing out Greece, and lenders are still struggling to find a way to protect eurozone banks if Greece defaults.

Inspectors from the EU, IMF and European Central Bank have said that Greece will receive 8 billion Euros in early November, although the money would only buy Greece and the eurozone a small amount of time to find a solution.

This was posted in Bdaily's Members' News section by Ruth Mitchell .