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Slovakia OKs expanded EU bailout fund

Slovakian lawmakers on Oct. 13 approved expanding the size and powers of the EU bailout fund, overcoming an earlier rejection and removing the last hurdle to the fund's use as the continent's main weapon against the debt crisis.

The parliament had rejected the changes to the bailout fund Oct. 11 because a junior coalition partner, the Freedom and Solidarity party, was against it. In a desperate effort to force that party to vote in favor, Prime Minister Iveta Radicova had tied the vote on the bailout fund to a confidence vote in the government. When the vote failed, her year-old government collapsed.

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

Slovakia is the last of the 17 eurozone nations to approve boosting the 440 billion euro (46 trillion yen) bailout fund, called the European Financial Stability Facility. (AP)

Shukan ST: OCTOBER 28, 2011

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World News Slovakia OKs expanded EU bailout fund Slovakian lawmakers on Oct. 13 approved expanding the size and powers of the EU bailout fund, overcoming an earlier rejection and removing the last hurdle to the fund's use as the continent's main weapon against the debt crisis. The parliament had rejected the changes to the bailout fund Oct. 11 because a junior coalition partner, the Freedom and Solidarity party, was against it. In a desperate effort to force that party to vote in favor, Prime Minister Iveta Radicova had tied the vote on the bailout fund to a confidence vote in the government. When the vote failed, her year-old government collapsed. The main opposition party, Smer-Social Democracy, then agreed to help the outgoing coalition approve the expanded fund in a second vote in exchange for early elections. Slovakia is the last of the 17 eurozone nations to approve boosting the 440 billion euro (46 trillion yen) bailout fund, called the European Financial Stability Facility. (AP) Shukan ST: OCTOBER 28, 2011 (C) All rights reserved