Tuesday, October 11, 2011

Slovak Parliament Rejects Plan to Expand EFSF

Will post more in the comments when I know more
Posted by Verde at 4:19 PM

2 comments:

  1. VerdeOctober 11, 2011 at 4:35 PM

    Although there was a no vote today, the Slovak parliament will remain in session and is likely to hold a second vote later this week.

    Ivan Miklos, the finance minister in Slovakia, said “There is an assumption that, one way or another, the EFSF will be approved by the end of the week.”

    There was fierce debate throughout the day during the Slovak Parliament Meeting, with Richard Sulik, the leading voice against the expansion of the EFSF, quoted as saying, “I'd rather be a paraiah in Brussels than have to feel ashamed before my children, who would be deeper in debt should I back raising the volume of funding in the EFSF bail-out mechanism.”

    I wouldn't be surprised to see a gap down in US markets tomorrow, but ultimately the no vote in Slovakia should not affect the markets too negatively as the consensus expect the vote to eventually pass...

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  2. VerdeOctober 13, 2011 at 11:19 AM

    Slovakia approved the EFSF expansion this morning as expected. Markets may have bottomed for the day as the latest uptick is in conjunction with the Slovak approval... What does it mean? Other than getting some short-term positive sentiment, it doesn't mean much... The terms of the EFSF expansion have yet to be explained and a solid plan does not yet exist... We'll have to wait till the first week of November to see more concrete info

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