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Slovakia completes euro fund approval

Second Slovakia vote backs EFSF changes
Second Slovakia vote backs EFSF changes

Slovakia has become the last of the 17 euro zone countries to ratify an increase in the zone's bail-out fund to €440 billion.

114 of the 146 deputies present voted in favour of boosting the European Financial Stability Facility and giving it additional tools to stop the spread of the euro zone debt crisis.

The country held a second ratification vote after a failed attempt to push it through parliament on Tuesday also toppled the centre-right government.

Before the vote, the parliament approved holding an early election on March 10 next year - a condition set by the opposition for voting in favour of the EFSF.

The first vote failed on Tuesday after the outgoing centre-right government lost the support of a junior coalition party that argued that the euro zone's second-poorest member should not have to foot the bill for bailing out richer countries.

The government of Iveta Radicova, the country's first female prime minister, lost its 79-seat majority in the 150-seat parliament and had to team up with the leftist opposition powerhouse Smer-SD of former prime minister Robert Fico, commanding 62 seats, for the second vote.

The EFSF was set up last year in the wake of the Greek bail-out, but leaders decided in July to give the fund additional tools and firepower.

The Luxembourg-based fund will be allowed to lend money to any country as a precaution before it gets too deep into trouble. It will also be able to buy sovereign bonds of struggling euro zone states on the secondary market and provide countries with money to recapitalise banks hard-hit by debt write-downs.

Kenny has talks with Barroso

Earlier, the Taoiseach Enda Kenny concluded 45 minutes of talks with the President of the European Commission Jose Manuel Barroso in Brussels.

In a short statement afterwards, Mr Kenny said Ireland would be held up as an example of how EU decisions properly implemented could produce results.

He said Ireland was headed in the right direction and that international commentary had recognised the return to growth and fiscal stability as a result of the implementation of the EU IMF bail-out programme.

President Barroso said he congratulated Mr Kenny on Ireland's recent economic performance and said both men shared ideas maintaining the "community method" in any future economic governance rules.

This is generally taken to mean that the European Commission would have a central role, as reflected in any future treaty change, in making proposals, as opposed to a more intergovernmental approach, which smaller member states fear would be dominated by France and Germany.