Slovakian Speaker of Parliament, Richard Sulik is against Slovakia voting for the EFSF bailout package. He`s leader of the Freedom and Solidarity, or SaS, a libertarian party who`s part of a 4 party coalition that forms the government.
Richard Sulik believes in the principles of the Austrian School of Economics and doesn`t uphold the mainstream idea that the solution to debt lies in more debt.
At the moment Slovakia, a very small country in the EU is last country standing who has yet to decide about the implementation of the EFSF plan to bailout Greece and possibly other EU member states via pumping up(capitalizing) the banks. Slovakia is expected to contribute 10 billion euros to this bailout package, which is biggest contribution of all EU member states using the euro currency in relation to its GDP.
On October 11th the Slovakian parliament will vote on the EFSF package. Out of the 4 government coalition members, 3 will vote in favor and only Sulik`s Freedom and Solidarity party will vote against. However the socialist opposition will have final word, as their vote will be decisive. The opposition is trying to pressure or blackmail the other 3 government coalition parties to dissolve the government and to hold new elections in exchange for positive vote to support the EFSF package on October 11th.
As Sulik claims, it might all end up in some sort of compromise. Slovakia could support the EFSF package with a vote but not chip in with the required money.
There`s also the possibility of a political deadlock which could in turn derail the whole EFSF project.
No matter the ending, one thing is sure. The efforts of France and Germany have been seriously delayed by the "stubborn" Slovakia and a delay in this case could prove fatal. This might be the reason as to why both Merkel and Sarkozy have announced today that an announcement about capitalizing banks will come only at the end of October. They are probably waiting for a clear outcome and positive resolution from Slovakia.
Lots of things can happen though in 3 weeks. Economy has embarked on a roller coaster ride, one which an EFSF bailout might not be able to stop. Anti-banks protests have bursted out in full force throughout US and they`re also spreading throughout Europe. If they snowball to something significant in the coming weeks, Merkozy(Merkel&Sarkozy) can kiss the EFSF idea goodbye.
I`ll leave you with a video of Richard Sulik making his case against the EFSF:
Disclosure: I am long FAZ.