Slovak agreement over euro zone rescue fund is welcomed

13/10/11 00:03 CET

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It caused a crisis and threatened the future of the euro zone’s main safety net.

Now it looks as though Slovakia’s political squabbles over boosting the rescue fund for economies in trouble are receding.

Politicians have reached agreement on ratifying a plan to boost the powers of the facility. The news has come as a huge relief to Brussels.

“I think its certainly very welcome,” said Oli Rehn, European Commissioner for Economic and Monetary Affairs. “It is indeed in the interests of Slovakia and the whole euro zone that we can have sufficient financial firepower for our financial backstop, in this case for the European Financial Stability Facility. That is essentially in order to contain this financial market turbulence,” he continued.

The Slovakian government of four coalition parties collapsed in a failed confidence vote, when parliament rejected ratification.

Politicians have now agreed to fresh elections in March.

A new vote on the stability fund is due to take place by the end of the week.

More about: Austerity, Euro in crisis, Eurozone crisis recovery plans, Slovakia

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