Slovakia Passes EFSF Expansion Vote

Tyler Durden's picture

Well, that's that.

  • 114 voted for the EFSF, 30 against and 3 abstained from 147 present (out of 150

More from Reuters:

- Slovakia's parliament ratified a plan to bolster the euro zone's EFSF rescue fund on Thursday, after voting to hold an early election as demanded by the opposition.


A junior party in the country's ruling coalition torpedoed the cabinet on Tuesday in a confidence motion connected with ratification of the plan to give the European Financial Stability Facility (EFSF) more powers to fight the debt crisis.


The failed attempt had rattled financial markets. The opposition committed to provide votes for the EFSF in a repeated vote, once the early election plan was approved.


Slovakia was the only one of the 17 countries using the euro single currency that had not approved giving the rescue fund more powers, a measure European leaders say is urgently needed to save the currency zone from financial ruin.


The difficulty ratifying the EFSF expansion in Slovakia is a sign of the challenges European leaders face responding to the debt crisis across 17 countries that must all act unanimously.


With 5.4 million people, Slovakia accounts for less than 2 percent of the currency bloc's population and 1 percent of its output, but its parliament could effectively veto the measure.


The delay in enacting the July deal comes even as other leaders are wrangling over further steps to protect euro zone banks if Greece defaults on its debts.


The EU will hold a summit on Oct. 23 to adopt more measures to counter the crisis.

Now: perhaps we can finally get some details of what will happen next instead of just blind short covering squeeze on rumor-based headfakes? Oh wait, we won't? Because there are no real details and it is all just rhetoric?

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prains's picture


wombats's picture

You didn't think the CB's of the world would actually let a little upstart Slovakia hold this up did you?

TPTB will stop at nothing.

eureka's picture

Moreover - this - is exactly how Europe works:  ever pragmatic, ever 'last moment' actors when it comes to non-core issues, which then, nevertheless, will be solved.

dlmaniac's picture


I heard they added a zero to the bribery check and re-sent it the Slovakian politicians. Some stubborn pain in the rear ones got a horse head in their bedroom instead but one way or another it's finally passed.

boiltherich's picture

I do hate to say I told you so....

machineh's picture


WonderDawg's picture

We all knew this was going to happen, so no surprise, right? They may now proceed with a rumor of a plan for a plan.

Ira Thurby-Wright's picture

To the Slovakians (bribe or no bribe), Well Played!

TheSheepWolf's picture

The good thing is that Sulik's chances on blocking ESFS are not bad right now. AFAIK the parliament cannot do 2nd round of voting immediately. They have to wait 6 months... Constitutional court ftw

homersimpson's picture

No market uptick.. yet..

HelluvaEngineer's picture

Priced in.  In other news, these guys are SELLOUTS.

Smithovsky's picture

The only way to make money these days is to think of the logical trade and then do the exact opposite.

Slovakia passed?  SELL!!!

eureka's picture

How about we all produce local goods and services, exchange them in universal currencies - i.e. PMs and or barters... - REF.:  Utah just passed law:  Gold & Silver is legal tender.

Maybe then we can all regain some real independence and self rule, while the centers of financialization and globalization power scams collapese.

Buy silver, crash JPM.  Push your local and state governments to set up independent PM currency rules. Check in with for inspiration and info. Godspeed, all.

CHECK:  Utah Sound Money Act.

curbyourrisk's picture

MOON SHOT on the way

knight99's picture

suspension of reality was good while it lasted!!

thatthingcanfly's picture

The nail that sticks up the highest...

Sudden Debt's picture

Nobody saw that one comming... :)

Yen Cross's picture

I'm stuck in a ditch. Fiat,Fiat? I'm starving to death! Someone please ? My 15 minutes of fame are running out!

Josh Randall's picture

Slovakian resolve - we hardly knew ye

dracos_ghost's picture

Wasn't even close. At least a little more drama with a close vote would have left some credibility. But alas, poor Yorick, he owes me money Horatio.

DormRoom's picture

One Debt to rule them all, One Debt to find them,
One Debt to bring them all and in the darkness bind them

sunnydays's picture

Caved into the bankers, were probably threatened with their lives many times over, to make sure they passed it.  I wonder how the Slovakian people feel!

defencev's picture


Did not I say so? You are here bunch of idiots. It is not about banksters. It is about preventing global catastrophe. Absolute shit here just pretend any kind of moral ground. All they want is global default and their Gold piles shooting to the sky. Just simple, purely selfish crave for wealth no matter what will happen with literally millions... Forget about it. A little group of lazy, unproductive, selfish,stupid


Conax's picture

As opposed to the large group of paper investors who have caused jobs to be exported to cheapo labor land, who have cost taxpayers untold billions of dollars to bail out their little dependent asses, and who are doomed to go broke in the end anyway, while their leadership piles onto Gulfstreams for their exodus to the land of sandy beaches, fruity drinks and big titty housekeepers with everyone's retirement money.

But yes, damn those gold bugs for their evil crime.

Storch's picture

Actually it is about saving corporations that made bad descisions and misallocated capital. As a reward they will continue to make poor descisions. If weak banks died those left could profit from not having been retarded. Also, there is private capital that would leap out of the woodwork if tard lenders were allowed to fail.

Privatize gain socialize loss.

Mark to market when times are good, mark to model when they arent. Sice when did banks and now countries become such pussies.

Tao 4 the Show's picture

Mr. Defensive is probably a troll, but for the sake of others, this has nothing to do with gold or other short term investments. There are at least two definable problems at the moment: the immediate debts of Greece and others, and the ongoing deficit spending. The EFSF can bailout a few immediate issues like Greece, but there is no way to pay the accumulating debt of all PIGS and others. So what is the point of paying off bad loans made by the bankers now? Another hole will appear very,very quickly. The longer term problem can not be solved like this and neither can the near immediate problems of Spain and others.

The only way to keep the cohesion attempted by the promoters is to create a pan-European tax collection agency. That means sovereignty dies a quick death and the bankers move into a position of full control. This short term solution is just a prelude to the bigger one as the problems mount. This bailout will do nothing but keep the bankers rich and the system chugging for just a bit longer. It's a scam. At least there was a moment of seeming resistance and sanity.

The next chapters of this are inevitable and will be much more dramatic.

YesWeKahn's picture

Most shorts either covered or squeezed out. Who is buying 238$ amazon? and 410$ apple?

gjp's picture

Can't believe how long these stocks are holding out, especially Amazon.  They will be the last to turn, but when they do look out.

nyse's picture

I'm shocked. Just kidding. As if Slovakia was gonna stop the machine..

Archimedes's picture

Does not matter, the peasants seem to finally have awakened.

qussl3's picture

So France wants the money for its banks, Allianz needs it too, not to mention the ECB wants that same pool to buy Spanish and Italian debt.

Well, that will end well.

Big Corked Boots's picture

Just in case anyone held any doubts regarding the bankers ruling the world...

Iriestx's picture

To the fucking moon!  +1000 day on the DOW incoming!

legal eagle's picture

Yes, and gold down, up, down, up I mean flat as a pancake.  More Euro QE and PMs do dittily....?

HeNateMe's picture

Patience my friend.  Patience.

dr.charlemagne's picture

ok, great. In summary: multiple sovereigns have unsustainable debt and are insolvent. EZ banks have enuf exposure to sovereign risk that they are insolvent. solution: create more sovereign debt to recapitalize the banks. ohh boy, we are saved


tekhneek's picture

Could we witness a tri-hyperinflation soon?

I thought we'd see real deflation first then hyperinflation, but the more this shit gets kicked the more I think we might just witness an EU-Sino-US hyperinflation competition.


dr.charlemagne's picture

as many ZHers have noted.....beggar thy neighbor

slaughterer's picture

Sell the ESFS news: the market sold the news on TARP approval in 2008.  

jdelano's picture

and this is hardly tarp approval...  Jesus, we're talking about a vote here to ratify a measly 200bil expansion that was a foregone conclusion in JULY...and the Merkel/Sarkozy claims they're going to have this all wrapped up in three weeks? Europe couldn't find it's own dick with three hands and a flashlight.  

boiltherich's picture

Not quite as simple as that JD... "The package will boost the EFSF to 440 billion euros and give it the ability to buy sovereign bonds to give country's relief from deteriorating markets, extend emergency lending to countries, and recapitalise banks."  (emphasis mine)

The proposed $2.7 trillion they want to feed bankers with awaited this vote, because it was not the amount that was the problem, it was the ability to buy soveriegn debt and recapitalize private banks, these are the links required to essentially take the next step in the near three trillion more in what will be a Eurobond transfer scheme. 

jdelano's picture

sigh.  Said this many times and will say it again--to lever up will require a referendum and amendments to the (german) constitution.  Also in order to get Germany to ratify the EFSF vote, Euro bonds were categorically ruled out.

boiltherich's picture

The ESM was ruled out, the EFSF was not.  The constitutional difference being that the ESM was to be a permanent facility with the power to issue eurobonds without the consent of individual member states.  That the German court said could not be done without a referendum that de facto transfered soveriegnty from Berlin over to Brussels.  But they hedged deeply when it came to existing facilities, and while it is true that the increase from 440 billion to $2.7 trillion for the EFSF mechanism could be challenged in a more more focused attempt to stop what you and I would call a transfer union the fact is that such a challenge would take a long time, a year at least, in the meanwhile the Chancellor and French president would have used the bulk of the funds as gifts to bankers.  Any ruling by the Bundesverfassungsgericht would be a massive case of lcoking the barn door after the horses are long gone.