What’s A Few Hundred Billion Between Friends…? Part II

In our post last week, we set out the current state of play regarding the ratification of the expansion of the EFSF by the 17 eurozone’s members’ parliaments.

Since then, the Austrian and Estonian parliaments have ratified the EFSF expansion as expected. The Netherlands has followed suit this evening, with 96 MPs voting in favour and 44 against.

However, an interesting (and unforeseen) development has occurred in Malta, where it was announced that the vote would be delayed after new legal questions were raised by a former prime minister. The debate is set to resume on Monday, with a vote expected the same day.

Meanwhile in Slovakia, which at one point looked like it might scupper the whole deal, it appears a consensus is now at hand. The Freedom and Solidarity party, which had been the source of discontent within the country’s governing coalition, has put forward a proposal to establish a parliamentary committee with the power to veto individual loans made under the EFSF, which looks likely to be accepted by the other parties.

Although the final approvals of the EFSF upgrade by member states' legislatures appear to be inevitable, as we've argued in our previous post, this will only mark the end of a particular chapter in the ongoing crisis, the Endgame is not even in sight yet...