Tuesday, October 11, 2011

All eyes on Slovakia after Malta greenlights eurozone rescue fund

There is just one hurdle left in the process of gaining approval for new powers to rescue the euro. After Malta gave its approval on Monday evening, only Slovakia has yet to approve the scheme.

The Maltese parliament voted unanimously to approve the new powers for the European Financial Stability Facility (EFSF) after two marathon sessions and a week's delay over a legal objection.

"This shows Malta's commitment towards European financial security," Finance Minister Tonio Fenech told the German news agency dpa after the vote.

Under the new rules agreed to by eurozone leaders this summer, the fund will be allowed to buy states' debt and recapitalize banks facing solvency troubles. The changes must be approved unanimously by the legislatures of all eurozone states, however, an example of how difficult policymaking can be across the 17-member currency union. more