Slovakia Rejects Plan To Expand EFSF, Government Falls
- RTRS-SLOVAK PARLIAMENT REJECTS PLAN TO EXPAND EFSF, GOVERNMENT LOSES CONFIDENCE VOTE
- SLOVAK OUTGOING GOVERNMENT EXPECTS EFSF TO BE APPROVED IN REPEATED VOTE, LIKELY THIS WEEK
Details From Bloomberg:
- Total of 55 lawmakers of 124 present back the motion, short of required majority of 76 deputies; 9 were against it.
- Rejection also triggered the fall of Radicova’s government as the vote was tied with a no-confidence motion
- Smer, largest opposition party, which didn’t back the legislation, will support the changes in a second vote, ensuring it will pass, party leader Robert Fico told rporters
- No date has been set for new vote; Finance Minister said revamped EFSF will likely be passed this week
The euro pared gains against the dollar on Tuesday after the Slovak Parliament rejected the plan to expand the European Financial Stability Facility (EFSF).
The Slovak government also lost a confidence vote but the EFSF package is expected to go through in a later re-vote because the outgoing prime minister planned to ask for help from the opposition.
The result had been anticipated after a junior party in the coalition said it would abstain.
All of the 16 other euro zone countries have already ratified the plan to give more powers to the EFSF.
Insert clip about the Spanish inquisition.