Slovakia's decision to drop out of an aid package for Greece undermines euro zone unity but it will not affect the bailout for Athens, and Bratislava may well have calculated that the repercussions will be slight. In an overwhelming parliamentary vote on Wednesday, the euro zone's poorest member ruled out providing 816 million euros towards a 110 billion euro ($140 billion) Greek bailout fund, saying it was unfair to make taxpayers in a country that has kept its debt under control stump up to bail out a profligate one. Slovakia did, however, agree to contribute to a wider safety net, known as the European Financial Stability Facility (EFSF), meant to prevent the debt crisis spreading to other euro states. The decision on Greece, which largely reflected domestic concerns and the imperatives of a center-right government that has been in power for a month, drew a rebuke from the European Commission, the EU executive that helped arrange the bailout. “I can only regret this breach of solidarity within the euro area,” the EU's economic and monetary affairs commissioner, Olli Rehn, said in a statement, noting that Slovakia had gone back on a commitment made by its previous government. He said EU finance ministers would discuss the decision when they next meet on Sept. 6-7. Rehn was quick to say that the move did not endanger loans to Greece, jointly funded by EU states and the IMF, but it clearly stung. His spokesman declined at a briefing on Thursday to say what consequences there might be. It is possible that euro zone finance ministers will issue a verbal statement of disapproval or disappointment at Slovakia's decision, but any censure is unlikely to go much beyond that. Slovakia appears to realize as much. Finance Minister Ivan Miklos said on Thursday he was surprised Brussels was upset by a decision he had flagged to finance ministers weeks ago. “I spent 2-1/2 hours at the Eurogroup debating the Slovak position on Greece,” he told reporters in Bratislava. “It was not an easy debate but I pointed out clearly our stance and the reasons behind the position.” Asked if he expected consequences for Slovakia, which joined the euro last year, Miklos said: “In terms of a possible reaction, I cannot image that rules, set by agreements, are being violated. This happens in the European Union from time to time.” A senior EU official with knowledge of Slovakia's situation said EU ministers had not told the country directly that it could face consequences if it did not back the Greek bailout, even if an element of censure was intended “between the lines”. Calculated move? With three weeks to go before EU finance ministers next meet, and Greece unaffected by the lack of Slovak participation, the issue may be sidelined by early September. EU leaders are aware that Slovakia, which remains firmly pro-European, has to take account of domestic pressures. They will want above all to display euro zone unity. “The Slovak move derives from highly unique Slovak political conditions,” said Jon Levy, the director of Europe research at Eurasia Group, a political analysis consultancy. “A scan of the 15 other members of the euro zone reveals no similar political arrangement, and thus this move should be considered in a domestic Slovakian context, not as a signal of broader fissures in political will.” Still, Slovak Prime Minister Iveta Radicova said on Thursday her country had merely said aloud what many thought quietly, and Germany said it was concerned that others might follow suit. “Yes, we were the only ones who said ‘No' loudly. But I'm certain that this ‘No' is in the minds of representatives from all EU countries,” Radicova told FT Deutschland newspaper, saying Slovakia had got no help when it was in difficulty. “What should I tell our citizens, that we should help those who aren't willing to help themselves?” Germany, the EU's biggest economy and main contributor to both the Greek bailout and the broader backstop fund, said it was worried Slovakia was removing a brick from euro zone unity. “Just as we welcome the decision to participate in the EFSF, we regret the decision on Greece,” a German Finance Ministry official said. “Especially since it reneges on a political agreement reached by the previous government.” However, with no other euro zone states even hinting at imitating Slovakia's move, it is extremely unlikely the Greek bailout could unravel. EU ministers know it is more a case of insisting that member states show greater unity. “There is nothing one can do about it,” one official said. “But if everybody starts reneging on agreements of previous governments, it's hard to see how this whole thing (the EU) is going to work.”
