Slovakia On Why It Votes No To EFSF Expansion: "Greatest Threat To The Euro Is Bailout Fund Itself"

[stockholmer]

http://www.zerohedge.com/news/slovakia-why-it-votes-no-efsf-expansion-greatest-threat-euro-bailout-fund-itself

Yesterday we reported http://www.zerohedge.com/news/dexias-funeral-will-be-announced-sunday-weakest-link-slovenia-prepares-bury-euro that tiny Slovakia's refusal to ratify the expansion of the EFSF 2.0 (even though a 4.0 version will be required this week after the "Dexia-event), may throw the Eurozone into a tailspin as all 17 countries have to agree to agree to kick the can down the road: even one defector kills the entire Swiss Watch plan. Yet an interview conducted between German Spiegel and Slovakia party head Richard Sulik confirms that tiny does not mean irrelevant, and certainly not stupid. In fact, just the opposite: his words are precisely what the heads ot the bigger and far less credible countries should be saying. Alas they are not. Which is precisely why the euro is doomed.

From Spiegel: http://www.spiegel.de/international/europe/0,1518,790577,00.html

Only two countries, Malta and Slovakia, have yet to ratify the expansion of the euro bailout fund. Its fate may be in the hands of a minor Slovak party headed by Richard Sulik. In an interview, the politician explains why he hopes the fund will fail and what he sees as the only way to save the euro.

SPIEGEL ONLINE: Mr. Sulik, do you want to go down in European Union history as the man who destroyed the euro?
Richard Sulik : No. Where did you get that idea?

SPIEGEL ONLINE: Slovakia has yet to approve the expansion of the euro backstop fund, the European Financial Stability Facility (EFSF), because your Freedom and Solidarity (SaS) party is blocking the reform. If a majority of Slovak parliamentarians don't support the EFSF expansion, it could ultimately mean the end of the common currency.
Sulik: The opposite is actually the case. The greatest threat to the euro is the bailout fund itself.

snip

[Vincardog]

1. Sulik has a point the GOP could/should follow:We have to observe three points

SPIEGEL ONLINE: Which ground rules should we be following?

Sulik: We have to observe three points: First, we have to strictly adhere to the existing rules, such as not being liable for others' debts, just as it's spelled out in Article 125 of the Lisbon Treaty. Second, we have to let Greece go bankrupt and have the banks involved in the debt-restructuring. The creditors will have to relinquish 50 to perhaps 70 percent of their claims. So far, the agreements on that have been a joke. Third, we have to be adamant about cost-cutting and manage budgets in a responsible way.

[formercia]

2. Aw, shucks, the Banksters won't get their loot.

I guess they will have to find someone else to rip-off.

[pampango]

3. Slovakia's rulers have "economic policies completely opposed to those of the left-wing Fico

government."

"Freedom and Solidarity believes in economic liberalisation, being led by the father of Slovakia's flat tax, and party prides itself on its economic expertise. ... The party cites a need to close the budget deficit, and advocates reforming the social insurance system."

"The party is eurosceptic, opposing the 'bureaucratic machinery' that it says that the EU represents. The party opposed the Treaty of Lisbon, EU economic harmonisation, and an increased EU budget. It is particularly wary of the European Union restricting the free market. The party opposed the ECB's bailout of Greece during the 2010 debt crisis, while Sulik has proposed drawing up plans to withdraw Slovakia from the Euro."

http://en.wikipedia.org/wiki/Freedom_and_Solidarity

If Slovakia does derail the EFSF it will be a victory for a right wing party that is anti-EU to begin with. The right throughout Europe wants to weaken the EU (the Euro is the easiest target at the moment) and bring more nationalism to the continent. F&S opposes helping Greece and any other country that gets into trouble, but they want to "reform the social insurance system" within Slovakia, too. "My money is for me" is a pretty typical conservative point of view.

[Fool Count]

4. Sulik is just a head of one of the parties in the ruling coalition.

When it comes to real vote the opposition (Smer) will support the bailout together with the other coalition parties.
That's why no one is really worried about Slovakia.