Slovakia finally ratified the eurozone bailout fund on Thursday, removing a major obstacle to the single currency area’s battle against a raging debt crisis set to deal a heavy toll on Europe’s banks.
Slovakia became the last country in the 17-nation eurozone to agree to expand to 440 billion euros ($600 billion) the European Financial Stability Facility (EFSF), the eurozone’s primary weapon against the debt debacle.
Under pressure from EU leaders, the Slovak parliament held a second vote after lawmakers rejected it earlier this week, threatening to derail efforts to resolve the crisis with a crunch EU summit looming on October 23.
With the Slovak hurdle out of the way, the European Union can now focus on plans to recapitalise banks amid the rising likelihood that those holding Greek debt will have to take bigger losses.
The vote also saved Europe from an embarrassing setback ahead of G20 talks in Paris this weekend, amid pressure from the United States and other economic powers for the EU to prevent the crisis from triggering a global recession.
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