tommy271
Forumer storico
Slovakia faces EU anger after refusing aid for Greece-UPDATE 1
Wednesday September 08, 2010 02:42:12 PM GMT
* Slovak decision may complicate EU budget talks
* Slovakia may face isolation, be "denied favours" at EU
(Updates with Rehn, Greek finmin comment)
By Marcin Grajewski and Jan Strupczewski
BRUSSELS, Sept 7 (Reuters) - Slovakia faced growing criticism and isolation at a meeting of European Union finance ministers on Tuesday over its decision not to contribute to an aid package for debt-ridden Greece.
Several EU officials said privately that Slovakia could be snubbed by some of the 26 other EU member states because its decision is likely to complicate talks on the bloc's budget, making the rich net payers less willing to grant aid to poorer countries.
"Slovakia had agreed to this. The new government in Slovakia has reneged on this agreement. This is not acceptable," Austrian Finance Minister Josef Proell told reporters.
"We will pursue discussions. We want Slovakia to take their responsibilities more seriously in the future."
The parliament in Slovakia, the poorest of the 16 countries that use the euro, last month ruled against contributing 816 million euros ($1.05 billion) to a 110 billion euro bailout fund for Greece.
Deputies said taxpayers in a country that has kept its debt under control should not have to bail out a profligate one.
Slovakia's new right-leaning government opposed taking part in the bailout despite a pledge by the previous administration to support Greece, where the budget deficit had ballooned so much that it threatened the stability of the euro zone.
Greek Finance Minister George Papaconstantinou told Reuters: "It is a bad signal for the EU as a whole."
The criticism of fellow EU member Slovakia was unusually blunt, and diplomats also expressed shock at Slovakia's decision.
"I am just appalled and shocked that a country can behave like that. It is such a flagrant act of not being united and being responsible for our 'common destiny' in the euro area," said a senior EU diplomat who asked not to be named.
LESS SOLIDARITY NOW IN BUDGET TALKS?
The euro zone's 16 finance ministers, who were meeting on the second day of talks on budget reform involving the 27 EU countries, were expected to cut the total amount available for Greece by the amount Slovakia had been expected to contribute.
Asked whether he felt isolated, Slovak Finance Minister Ivan Miklos said late on Monday: "No, I don't. At least, not yet."
EU Economic and Monetary Affairs Commissioner Olli Rehn discussed the issue with Miklos on the sidelines of the ministers' meeting.
"It (the decision on granting aid to Greece) was a crucial decision at a critical moment to safeguard financial stability in the euro area, including Slovakia," Rehn told reporters.
"We expect that all EU member states ... will respect the commitments they have undertaken by unanimity."
Jose Manuel Barroso, president of the EU's executive European Commission, said in a speech on Tuesday that solidarity was vital in such a tough economic climate. [ID:nLDE6860MM]
EU diplomats say that some rich EU countries may now be less willing to show solidarity in negotiations on the bloc's next long-term budget for 2014-2021.
About one third of the EU's budget, now worth some 130 billion euros ($167.3 billion), is spent on aid to poor regions, mostly in central and eastern Europe, including in Slovakia. [ID:nLDE6850QM]
EU Budget Commissioner Janusz Lewandowski, asked whether the Slovak decision would have any impact on budget negotiations, told Reuters: "It will not help."
Another diplomat said: "Slovakia has shot itself in the foot."
"Next time Slovakia comes and wants to call in a favour, people will remember this," a third envoy said.
***
I parenti poveri ...
Wednesday September 08, 2010 02:42:12 PM GMT
![reuters_white.jpg](http://static.forexyard.com/images/home/reuters_white.jpg)
* Slovak decision may complicate EU budget talks
* Slovakia may face isolation, be "denied favours" at EU
(Updates with Rehn, Greek finmin comment)
By Marcin Grajewski and Jan Strupczewski
BRUSSELS, Sept 7 (Reuters) - Slovakia faced growing criticism and isolation at a meeting of European Union finance ministers on Tuesday over its decision not to contribute to an aid package for debt-ridden Greece.
Several EU officials said privately that Slovakia could be snubbed by some of the 26 other EU member states because its decision is likely to complicate talks on the bloc's budget, making the rich net payers less willing to grant aid to poorer countries.
"Slovakia had agreed to this. The new government in Slovakia has reneged on this agreement. This is not acceptable," Austrian Finance Minister Josef Proell told reporters.
"We will pursue discussions. We want Slovakia to take their responsibilities more seriously in the future."
The parliament in Slovakia, the poorest of the 16 countries that use the euro, last month ruled against contributing 816 million euros ($1.05 billion) to a 110 billion euro bailout fund for Greece.
Deputies said taxpayers in a country that has kept its debt under control should not have to bail out a profligate one.
Slovakia's new right-leaning government opposed taking part in the bailout despite a pledge by the previous administration to support Greece, where the budget deficit had ballooned so much that it threatened the stability of the euro zone.
Greek Finance Minister George Papaconstantinou told Reuters: "It is a bad signal for the EU as a whole."
The criticism of fellow EU member Slovakia was unusually blunt, and diplomats also expressed shock at Slovakia's decision.
"I am just appalled and shocked that a country can behave like that. It is such a flagrant act of not being united and being responsible for our 'common destiny' in the euro area," said a senior EU diplomat who asked not to be named.
LESS SOLIDARITY NOW IN BUDGET TALKS?
The euro zone's 16 finance ministers, who were meeting on the second day of talks on budget reform involving the 27 EU countries, were expected to cut the total amount available for Greece by the amount Slovakia had been expected to contribute.
Asked whether he felt isolated, Slovak Finance Minister Ivan Miklos said late on Monday: "No, I don't. At least, not yet."
EU Economic and Monetary Affairs Commissioner Olli Rehn discussed the issue with Miklos on the sidelines of the ministers' meeting.
"It (the decision on granting aid to Greece) was a crucial decision at a critical moment to safeguard financial stability in the euro area, including Slovakia," Rehn told reporters.
"We expect that all EU member states ... will respect the commitments they have undertaken by unanimity."
Jose Manuel Barroso, president of the EU's executive European Commission, said in a speech on Tuesday that solidarity was vital in such a tough economic climate. [ID:nLDE6860MM]
EU diplomats say that some rich EU countries may now be less willing to show solidarity in negotiations on the bloc's next long-term budget for 2014-2021.
About one third of the EU's budget, now worth some 130 billion euros ($167.3 billion), is spent on aid to poor regions, mostly in central and eastern Europe, including in Slovakia. [ID:nLDE6850QM]
EU Budget Commissioner Janusz Lewandowski, asked whether the Slovak decision would have any impact on budget negotiations, told Reuters: "It will not help."
Another diplomat said: "Slovakia has shot itself in the foot."
"Next time Slovakia comes and wants to call in a favour, people will remember this," a third envoy said.
***
I parenti poveri ...