Photo: Georgio on Flickr
Congrats, Europe. That big plan to expand the European Financial Stability Facility is pretty much in the bag.With only two nations left to approve the deal after the Dutch parliament gave its blessing with an overwhelming majority, the prognosis is sunny for the success of the EU bill.
Slovakia — the primary holdout on the EFSF — is poised to pass the bill, though whether it will topple the government in the process is another matter altogether. A rebel coalition party, SaS, is demanding lots of conditions for passing the deal — the latest being a demand that Europe do away with the European Stability Mechanism (an eventual successor to the EFSF) — according to Reuters.
Regardless, however, SaS’s admission today that it sees a plan “workable” pretty much seals the deal for the EFSF. Even the opposition leader has said his party will support a repeated vote if the first vote fails, so long as the government agrees to quit, restructure, or hold new elections.
A vote in Slovakia’s parliament is set for next Tuesday.
Malta’s government was forced to delay a vote on the proposal until Monday, after an opposition MP asked for clarification of the obligations Malta would need to shoulder under an updated copy of the law, according to the Malta Times. Even so, the opposition has already said it will vote for the package, warning that it would not endorse any new obligations.
Ratification of expanded powers for the EFSF will allow the organisation to purchase Spanish and Italian bonds and will set the stage for an orderly Greek default.