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.
The European Union appealed to the Slovakian parliament on Wednesday to reconsider its vote against giving the Εurozone rescue fund new powers to fight the debt crisis.
In a joint statement, European Council President Herman Van Rompuy and European Union President José Manuel Barroso said called 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.
“We remain confident that the Slovak authorities and the Parliament are fully aware of the critical importance of an enhanced and more flexible European Financial Stability Facility (EFSF) to preserve financial stability in the euro area. And that is in the interest of all euro countries, including the Slovak people.
Our common currency plays a crucial role in investment decisions, in growth, in jobs. This is about the prosperity of us all.”