Slovakia’s coalition scrambles for deal on eurozone rescue

Slovakia’s squabbling four-party coalition met yesterday to try to break the deadlock over approving a crucial eurozone rescue mechanism aimed at freeing funds for debt-stricken members like Greece.

Centre-right Prime Minister Iveta Radicova supports the rescue package but has so far failed to convince a junior coalition partner – the liberal Freedom and Solidarity (SaS) – to back it in a parliamentary vote set for October 11.

All eurozone members must ratify changes agreed in July for the European Financial Stability Facility for them to be implemented.

With the Netherlands expected to back the increase in size and scope of the EFSF later on yesterday and Malta on Monday, Slovakia’s decision, as the last state to vote, is crucial.

Radicova, who normally commands a majority 79 votes in the 150-member parliament, is dependent on the nay-saying SaS’s 22 seats – or failing their support, the 62 seats of the opposition left Smer-SD.

“We have prepared a new solution that won’t harm Slovak taxpayers but we have to present the solution to our partners before commenting on details,” SaS deputy chairman Daniel Krajcer said ahead of yesterday’s talks, adding that he expected partners to “take a few days to think about the proposal.” Slovak media quoted an SaS official yesterday as saying it would agree to pass the EFSF changes on condition that Slovakia is effectively granted veto power over future emergency loan disbursements .