Guy Verhofstadt (Liberal &  Democrat group leader in the European Parliament) expressed his deep regret at the Slovak Parliament's rejection last night of the upgraded European Financial Stability Facility which is seen as a key element of any emerging solution to the financial crisis now entering a critical phase.
 
"After months of dithering the intergovernmental method has brought us back to square one. If Member States have not already learned the lessons and costs of slow and inefficient decision-making they will now.  Measures to halt a global economic downturn are effectively being blocked by internal Slovak political manoeuvring. In particular I regret the decision of several parties not to support the EFSF. Sharing a common currency carries responsibility for upholding the collective interest in maintaining solidarity and stability within the monetary union."
 
"This is the fundamental weakness in eurozone governance where crucial and timely decisions are at the mercy of 17 national parliaments and narrow political majorities can be exploited for equally narrow political interests. In the long run the EFSF should become more like a European Monetary Fund, operating independently of national governments."
 
"Whilst comprehending the concerns about moral hazard in the eurozone if fiscal sinners are bailed out, I very much regret that the Slovak Parliament rejected the revised EFSF which is essential to leveraging the capital to ease Europe's sovereign debt problems. I hope that a new vote will take place in a few days to finally approve it.
 
"The challenge for EU leaders to agree on proposals to resolve the crisis when they meet on 23rd October has just got even harder. They must nevertheless still find a way to push ahead without Slovakia; to recapitalise the banking sector either through exploiting national credit worthiness or possibly calling upon the EIB until a more permanent mechanism can be agreed. Meanwhile the European Commission must stick to its commitments to present proposals on eurobonds and closer economic and fiscal integration in time for the next summit, now postponed until 23rd October."