Slovakia will pose the greatest threat to the plan’s ratification. It has already said it will likely be the last country to vote before a two-day summit of EU leaders beginning October 17, according to EurActiv.
The country’s two leading political parties are at odds over the plan, with opposition SaS pushing for a managed Greek default and exit from the eurozone as the only viable option. At minimum, the plan in Slovakia will pass with the condition that the country’s parliament must approve each aid contribution the EFSF doles out, with ruling SDKU-DS party having already conceded that condition to the opposition.
Estonia is still in debate over a plan to expand the European Financial Stability Facility on the heels of an overwhelming approval by German lawmakers earlier today.
This news likely bolstered European markets during trading hours, and spurred on American markets early.
Germany’s vote bodes well for the success of the second Greek bailout plan, regardless of many unresolved concerns about the plan and about Greek’s commitment to austerity measures.
These are some important concerns:
– There has still been no resolution on the collateral demanded by Finland in return for its participation in the bailout. Despite reports that progress had been made on this issue at the recent EcoFin meeting, we’re going to have a hard time believing that this issue is really under control.
– While likely to approve the plan, Estonia passes the EFSF bill along with an amendment that its Parliament must approve each of the Facility’s contributions, according to Estonian Public Broadcasting. This will hamper the effectiveness of the EFSF once it is put into place.
– Disbursement of $11 billion dollars in ECB/EU/IMF troika aid is still up in the air after inspectors resumed talks with the Greek government today. Their decision will signal if Greece is keeping up its side of the bargain and sticking to deficit-reduction and privatization goals.
Austria will likely pass the EFSF expansion plan tomorrow. Cyprus, Estonia, Malta, the Netherlands, and Slovakia will vote on the agreement next month.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.