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Slovakia may reconsider help to Greece

Euro zone member Slovakia will have strong reasons to reconsider its help to indebted euro group member Greece, Eurogroup chairman Jean-Claude Juncker was quoted as saying.

"I think that Slovakia will have strong reasons to reconsider its cooperation in the package for Greece," Jean-Claude Juncker told Slovenian daily Delo in an interview published in the Monday edition.

He also said that June establishment of the euro zone's emergency loan mechanism, the European Financial Stability Facility (EFSF), calmed markets and added that he was against changing euro zone rules in a way to allow exclusion of euro members.

Since the EU agreed on the bailout package in May, Slovakia had faced parliamentary elections. The previous left wing government led by outgoing PM Robert Fico, stalled the plans to rescue Greece, and moved the “hot potato” to the new center-right government.

Slovakia, the poorest euro zone member, in July became the last euro member to sign the EFSF, but its government at the same time recommended parliament not support providing a bilateral loan to Greece, part of a separate European bailout plan for the country. PM Iveta Radicova, declared nearly two weeks ago that they would not support Greece’s bailout, according to a report by Capital.Gr, a Greek economy website.

Slovakia is the only country in the euro zone to question the bailout package’s ability to rescue Greece, and Greece’s ability to pay back the loan. Slovakian share in the package is €700 million. (Reuters, BBJ)