Slovakia's Prime Minister Iveta Radicova is reported to have threatened to resign if her centre-right coalition does not reach agreement today to expand the eurozone's bailout fund, known as the European Financial Stability Facility.
Slovakia has yet to vote to expand the size and scope of the EFSF fund under the agreement reached in July to deal with the eurozone debt crisis.
Yesterday, Malta gave its backing to new powers for the eurozone's rescue fund, leaving Slovakia as the only one of the 17 countries using the single currency not to do so.
The measure can still be approved by the Slovak parliament with support from opposition parties, but that could bring the government down and force early elections.
The SITA news agency reported yesterday that Ms Radicova had offered to tie the EFSF vote to a confidence vote on the cabinet, to resign if the vote was lost, or to resign before the vote.
"By the morning, I will take a responsible decision on further steps that I'll propose to the coalition partners," Ms Radicova said when leaving the last round of inconclusive talks late last night.
Asked by journalists if she felt like going on, she said: "It's not about feeling, it's about being able to govern."
The liberal Freedom and Solidarity (SaS) party is threatening to vote against the deal unless Slovakia is exempt from providing guarantees worth €7.7bn for the revamped €440bn EFSF.
It also wants an opt-out from the European Stabilisation Mechanism (ESM), a permanent bailout fund designed to replace the EFSF in mid-2013, and veto power for Slovakia over future emergency loan disbursements from the EFSF.
Ms Radicova's coalition commands 79 votes in the 150-member parliament and depends on the SaS's 22 seats in the vote scheduled for later this afternoon.
Failing their support, she would have to secure the support of the opposition left powerhouse Smer-SD but its leader, ex-prime minister Robert Fico, wants a change in the coalition or even snap polls in return.
