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Friday, 30 September 2011

Sklovakia should stand firm

Slovakia has very recently been noticed by many international media ccommentators as a possible obstacle to  the quiet confirmation of the already-spent first tranche of the eurozone's bailout package for Greece.
 Now that the Bundestag has voted in favour - as was always to be expected - parliamentary approval remains to be secured from half a dozen member states: with the Slovaks likely to vote last. Their vote is expected to take place in about a month's time, and the consensus view of outsiders is that the majority of factions will accept the obligation to be 'good Europeans' in the way that the eurorats of Brussels seek to impose on all their vassals.
This will give time for a much better test of the ability of the Greek government to deliver what they have promised in terms of job cuts, salary and pension reductions, and sales of public assets [and of the appetite of markets to buy Greek assets and take on their depressed workforces]. The current Greek policy must stand the test of time - obviously a much longer timescale than the next month - but the next month might give indicative evidence of the viability of the policy.
The Slovaks had to open up their books and admit the most exhaustive checks of their acceptability for euro membership; in a way that none of the founder members were tested. There is no reason why they should feel the slightest obligation to help international fraudsters, which is what the Greeks who managed their country's entry to the euro were. The other founder members can be construed as co-conspirators with the Greeks, because the facts were transparent at the time.
So if the Slovaks delay - or even defeat - the passage of the package of eurozone aid, they must be exonerated from the original sin.
Fear of the consequences of the bailout collapsing and causing a distressed default by Greece, followed by other countries and a global depression, will probably impel the Slovak parliamentarians to allow the package to proceed, in the end. But they have a good right to decide when that decision will be taken, and to raise a warning to the whole eurozone that they cannot take for granted the support of all the members for whatever is decided in the back-corridors of Brussels.

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