Bloomberg News

Slovak Government Approves Euro Area’s Permanent Bailout Fund

February 01, 2012

Feb. 1 (Bloomberg) -- Slovakia’s outgoing government approved the country’s participation in the euro region’s permanent bailout fund, the bloc’s main tool to prevent future fiscal crises.

The Cabinet approved the creation of the so-called European Stability Mechanism at a meeting today in Bratislava, the capital, according to the government’s website. Slovakia will contribute 659 million euros ($869 million) in cash and about 5 billion euros in guarantees into the 700 billion-euro fund.

The agreement on the mechanism must be approved also by parliament in the second-poorest euro-sharing nation. Slovakia was the last country to ratify the enlargement of the ESM’s temporary predecessor last year, failing to back it in the first vote, which triggered the collapse of Iveta Radicova’s government and an agreement on early elections in March.

--Editors: Alan Crosby, James M. Gomez

To contact the reporter on this story: Radoslav Tomek in Bratislava at rtomek@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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