Slovak coalition in deadlock over eurozone rescue

(BRATISLAVA) - Slovakia's four-party coalition remained deadlocked Wednesday over the passage of the eurozone's crucial EFSF bailout in an October 11 parliamentary vote.

Centre-right Prime Minister Iveta Radicova backs the EFSF rescue package, key to unlocking funds for debt-mired eurozone members like Greece, but has so far failed to secure its passage.

To do so, Radicova, who normally commands a majority 79 votes in the 150-member parliament, is dependent on the 22 seats of a liberal junior partner that has threatened to vote no -- or the 62 seats of the opposition left Smer-SD.

Legal experts say that if parliament fails to ratify the EFSF in a first reading, the vote can be repeated immediately.

"We will not support the EFSF in this form because it would massively harm Slovak taxpayers," Richard Sulik, leader of the Freedom and Solidarity (SaS) junior governing coalition partner said Wednesday.

He repeated threats to torpedo the fund unless Slovakia is exempt from providing state guarantees worth 7.7 billion euros ($10.2 billion) for the re-vamped 440-billion euro EFSF.

Three of the 17 eurozone's members are yet to vote on the ratification of the revamped EFSF.

Leader of the opposition Smer-SD, ex-prime minister Robert Fico, vowed Wednesday his party's support in a second ballot, but in exchange for a power shift in government or a snap election.

"Smer-SD will not back the EFSF in the October 11 vote," Fico said Wednesday, adding he viewed "the vote as an internal matter of the coalition, a test which they either pass or fail."

"We will support EFSF in a repeated vote, but after a new round of talks and political consequences," Fico said, adding the repeat vote could, but would "not necessarily", come before a key October 17 EU summit.

"But I believe a repeated vote won't be needed. SaS lawmakers are being pressured right now and the coalition is seeking a solution," Fico said.

"I believe they will ratify it on October 11," he said, adding, "if the coalition doesn't ratify EFSF, it's high time for snap election."

Marian Lesko, a Bratislava-based political analyst, warned Wednesday the EFSF row has become the "greatest crisis Radicova's coalition has ever faced."

"The coalition cannot survive a head-on collision with the euro rescue fund," he said, adding that "Fico could ask for Radicova to resign as prime minister" in exchange for Smer-SD backing.

"I wouldn't rule out Fico preferring a government reconstruction to a snap election" which parties could ill afford so soon after the campaign for last year's general election, Lesko observed.

But any possible snap election could come "February or March" at the earliest, he conceded.

All but three of the 17 eurozone's members have ratified the revamped EFSF. The other two are Malta and the Netherlands, whose parliament is to vote on Thursday,

An EU member since 2004, Slovakia was the only country to refuse to participate in an emergency loan for Greece last year.

Only 38 percent of Slovakia's 5.4 million people support their country's contribution to the EFSF, a recent opinion poll found.

The second poorest eurozone member, whose economy is driven by car and electronics exports, is currently undergoing austerity measures to cut its public deficit from 4.9 percent this year to under 3.0 percent of GDP by 2013.