© 2022 Western New York Public Broadcasting Association

140 Lower Terrace
Buffalo, NY 14202

Mailing Address:
Horizons Plaza P.O. Box 1263
Buffalo, NY 14240-1263

Buffalo Toronto Public Media | Phone 716-845-7000
WBFO Newsroom | Phone: 716-845-7040
Your NPR Station
Play Live Radio
Next Up:
Available On Air Stations

Europe's Rescue Package Goes Down, Stocks Point Up; What Gives?

<p>Slovak Prime Minister Iveta Radicova, who saw her coalition government fall with the "no" vote on a Eurozone rescue package.</p>
Petr David Josek

Slovak Prime Minister Iveta Radicova, who saw her coalition government fall with the "no" vote on a Eurozone rescue package.

Follow along, if you will:

"Slovakia Rejects Expanded Eurozone Bailout Fund."

Bad news, right?

Maybe not:

"Markets Buoyed By Slovakia Revote Hopes."

How come?

According to Bloomberg News, "after the close of U.S. trading [on Tuesday], the Slovak parliament failed to approve the overhaul of Europe's bailout fund, toppling the government. [But] Smer, the largest opposition party, which didn't back the legislation, will support the changes in a second vote, ensuring it will pass, party leader Robert Fico told reporters in the capital Bratislava. Slovakia is the only country in the 17-nation euro area that has yet to ratify the enhanced EFSF."

The BBC adds that correspondents in Slovakia "say a new vote on the fund is likely by the end of this week." And why would Smer reverse its position? "We're saying 'no' to a rightist government, but we're saying 'yes' to the rescue fund," said party leader Fico, according to the BBC.

That "rightist government," led by Prime Minister Iveta Radicova, fell after Tuesday's vote to reject the package. Radicova had tied her coalition's fortunes to passage.

As our friend Jacob Goldstein wrote on the Planet Money blog Tuesday, "Europe's Hopes Hinge On ... Slovakia!"

Copyright 2021 NPR. To see more, visit https://www.npr.org.

Mark Memmott
Mark Memmott is NPR's supervising senior editor for Standards & Practices. In that role, he's a resource for NPR's journalists – helping them raise the right questions as they do their work and uphold the organization's standards.