Slovakia approves EU bailout fund

LONDON – Slovakia’s parliament approved an expansion of the European Union bailout fund on Thursday, reversing its course and in so doing, removing the final barrier to use of the fund to deal with the eurozone’s ongoing debt crisis.

The continentwide plan, which needed the support of all 17 eurozone nations, had already been OK’d by the other 16 when on Tuesday, the Slovak parliament said no, causing the collapse of the government led by Prime Minister Iveta Radicova.

In return for early elections, the opposition SMER party, which had abstained from the Oct. 11 vote, gave its approval Thursday, and the measure passed by a 114-30 vote. As a result, Radicova’s government will resign after barely a year in power.

The European Financial Stability Facility fund will be expanded to $600 billion and provide more power to combat the debt crisis that has rocked the continent.

Finance Minister Ivan Mikos welcomed the result. “The price was high, but I am glad that Slovakia at the end delivered on its commitments, and we don’t block this tool for the eurozone to stem the crisis,” he said.

The episode pinpointed the vulnerability of eurozone cohesion as the political disaffection of a minor party in one small EU nation threatened the entire eurozone and damaged EU credibility in a time of crisis.