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Ministry: No Confidence Vote Not to Affect Passage of Euro Stability Law

Ljubljana, 20 September (STA) - The Slovenian Finance Ministry rushed to reassure financial markets Tuesday that the fall of the Slovenian cabinet would not halt the parliamentary passage of a law providing expanded guarantees for the euro stability mechanism.

In a statement issued late on Tuesday, the ministry expressed expectation that following approval in the relevant committee today, the amendments to the act on state guarantees to secure financial stability in the eurozone would be confirmed at the next sitting of the National Assembly.

The motion expanding guarantees for the European Financial Stability Facility (EFSF), as part of which Slovenia's share in the EUR 780bn guarantee mechanism will rise from EUR 2.07bn to EUR 3.66bn, was adopted by the government on 1 September.

Being a motion started by government acting with full powers, it is not affected by today's decision of MPs to vote out the government.

Lawmakers are therefore expected to take a vote on the bill as scheduled on 27 September, with government officials expected to continue lobbying for its confirmation in the meantime.

Any delay in debating the motion or withdrawal of support from MPs who have already endorsed it would be counter-productive and would reduce Slovenia's credibility in international circles, the ministry wrote in the statement.

In today's debate in the parliamentary Monetary Policy Committee, MPs did not object to the higher guarantees, although they took issue with the government's decision to fast-track the amendments through parliament.

The government decided to resort to emergency procedure because the new EFSF arrangement is expected to be in place in late September or early October.

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