Slovakian opposition back EU bailout plan

European Central Bank ECB

Business digest: Social Democrats agree to support controversial bill in return for early elections

LAST UPDATED AT 10:40 ON Thu 13 Oct 2011

Slovakia's opposition party, the Social Democrats, has agreed to support the ratification of EU plans to increase the bailout fund, after attempts to do so earlier this week failed. In return, the country will hold early elections.

Prime Minister Iveta Radicova's coalition collapsed on Tuesday after one of her party's partners, the Freedom and Solidarity party, refused to back an expansion of the European Financial Stability Facility to €440bn.

European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso urged Slovakian parties to "rise above the positioning of short-term politics and seize the next occasion to ensure the swift adoption of the new agreement". The bill is now expected to be voted through later this week.

Robert Fico, head of the Social Democrats, said he had agreed to support the bill in return for snap elections in March 2012. "We're saying 'no' to a rightist government, but we're saying 'yes' to the rescue fund," he said.

Read a full report at BBC News.

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