The euro zone's emergency loan facility should be operational this month, finance ministers said today, expressing hope Slovakia would cease to block the activation of the €440 billion fund.
The special-purpose vehicle, called the European Financial Stability Facility (EFSF), is being set up to provide temporary financing to euro zone countries in trouble and its activation needs the signatures of all 16 countries in the currency area.
Slovakia has refused to sign the EFSF's framework agreement because parties that won elections there in June have been opposed to the mechanism, blocking the whole process.
Officials voiced confidence that after monthly talks among finance ministers from the 16-country euro zone and the wider, 27-country European Union in Brussels on Monday and Tuesday, the Slovaks would subscribe to the EFSF.
"I do think that Slovakia will sign up before mid-July. The instrument (EFSF) will be available without any doubt before the end of the month," the chairman of euro zone finance ministers, Jean-Claude Juncker, told reporters before the meeting.
But Slovak prime minister Iveta Radicova said after a meeting with EU President Herman Van Rompuy that Slovakia's parliament and cabinet had to be consulted before the country could sign off on the EFSF.
Ms Radicova said the cabinet would meet to discuss the issue on Wednesday and that Slovakia also remained opposed to making a contribution to a 110 billion euro EU bailout fund for Greece.
Pressure on Slovakia to unblock the EFSF is mounting because the fund is a crucial part, together with stress tests of EU banks, of Europe's efforts to restore confidence in financial markets after the Greek debt crisis.
"I am very optimistic that the new Slovak finance minister recognises the seriousness of the situation and a signature will be given in the next hours or days," Austrian Minister for Fuinance Josef Proell said.
"And then the vehicle will be fully operational," he said.
Minister for Finance Brian Lenihan is not attending the meeting and the State is being represented by Minister of State Martin Mansergh.
Reuters