Slovakia Rejects Expanded Eurozone Bailout Fund

Posted October 11th, 2011 at 5:10 pm (UTC-5)
Leave a comment

Slovakia has rejected an expanded European bailout fund in a vote that also toppled the Slovak government.

Parliament Tuesday voted against the plan, which would have committed Slovakia to guarantee $10 billion for a eurozone-wide fund to help troubled economies like Greece avoid default. Opponents of the plan say Slovakia simply cannot afford it.

Slovak Prime Minister Iveta Radicova said she would resign if parliament rejected the bailout fund. She said it is “unacceptable” for her to let Slovakia be isolated among the eurozone nations.

The plan needs unanimous approval by all 17 eurozone countries. Slovakia is the only eurozone member to say no, and the plan's future is now unclear.

But a new Slovak parliamentary coalition could approve the bigger aid plan in the coming days.