Things seem, for once, to be moving quickly in the Euro-zone. After high drama in Slovakia over ratification of the enlarged bail-out fund last week, this week looks set to be all about leverage. More specifically, it will be about how the Euro-zone makes sure the EFSF has enough fire power to assure the markets that if things begin to unravel, Spain and Italy will be able secure funding without leaving the cupboard bare. The plan gaining most traction was proposed by Allianz and involves the...
This is not a result for Euro 2012, but the final round, now first leg vote, to ratify the amended EFSF program, from the only country in the 17-nations that uses the currency that has yet to vote ?yes'. An unanimous ?yes' vote by all member states is required. Slovakia's approval of enhanced powers of the EFSF is crucial for adopting the key elements in the strategy to prevent contagion. The negative vote lacked the intensity of all out failure. There is a political will in Slovakia to...