This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-15251441

The article has changed 5 times. There is an RSS feed of changes available.

Version 0 Version 1
Eurozone bailout fund faces key Slovakian vote Eurozone bailout fund faces key Slovakian vote
(about 9 hours later)
Slovakia will vote later on measures to bolster the powers of the eurozone bailout fund, seen as vital in combating the bloc's debt crisis.Slovakia will vote later on measures to bolster the powers of the eurozone bailout fund, seen as vital in combating the bloc's debt crisis.
After Malta approved the plans late on Monday, Slovakia is now the last of the 17-member states to vote. All other members have approved the measures. After Malta approved the plans late on Monday, Slovakia is now the last of the 17 member states to vote. All other members have approved the measures.
But doubts remain about the outcome of the vote, with coalition partners unable to agree a compromise deal. But with one coalition party insisting Slovakia is too poor to bail out others the outcome of the vote is in doubt.
Without a deal, the government will have to rely on opposition support. The prime minister has said she will tie the vote to a confidence vote.
"I have to say that the coalition partners have failed to reach an agreement," said Slovakian Prime Minister Iveta Radicova. "I have to say that the coalition partners have failed to reach an agreement," Iveta Radicova said.
She said talks would resume before the vote in Parliament later in the day. While three of the four parties in the coalition back the expansion, a fourth is holding out, demanding tough conditions.
Unless the party falls into line at the last minute, the government could end up depending on opposition support - but the opposition has made its own stringent demands, including new elections.
To expand the powers of the bailout fund - the European Financial Stability Facility - all member states must agree on the measures proposed in July.To expand the powers of the bailout fund - the European Financial Stability Facility - all member states must agree on the measures proposed in July.
These include expanding the size of the fund beyond its current lending capacity of 440bn euros ($600bn; £383bn). These include expanding the size of the fund to an effective lending capacity of 440bn euros ($600bn; £383bn).
The also include giving it the power to buy eurozone government debt and offer credit lines to member states and to banks. They also include giving it the power to buy eurozone government debt and offer credit lines to member states and to banks.
However, these plans are now seen as inadequate, with markets suggesting the fund needs to be nearer 2tn euros to be effective. The irony is that these plans, agreed in July, are now seen as inadequate, says the BBC's Matthew Price in Brussels.
Market analysts suggest the fund needs to be nearer 2 trillion euros to be effective.
Other plans agreed in July, to make private investors take a hit on any default by Greece on its debts, are also now seen as insufficient. Reports suggest leaders are contemplating a 50% cut rather than the 21% cut originally proposed.Other plans agreed in July, to make private investors take a hit on any default by Greece on its debts, are also now seen as insufficient. Reports suggest leaders are contemplating a 50% cut rather than the 21% cut originally proposed.
Fresh measuresFresh measures
French President Nicolas Sarkozy and German Chancellor Angela Merkel pledged on Sunday to do what it takes to protect European banks from the debt crisis.French President Nicolas Sarkozy and German Chancellor Angela Merkel pledged on Sunday to do what it takes to protect European banks from the debt crisis.
The leaders said they were close to a detailed package to ease the crisis and would give further details within weeks.The leaders said they were close to a detailed package to ease the crisis and would give further details within weeks.
The pledge helped boost stock markets on Monday, with Wall Street's Dow Jones index rising 3%, albeit on low volumes.The pledge helped boost stock markets on Monday, with Wall Street's Dow Jones index rising 3%, albeit on low volumes.
The markets are now expecting more comprehensive measures designed to tackle the crisis once and for all to be announced at a G20 meeting in Cannes at the beginning of November.The markets are now expecting more comprehensive measures designed to tackle the crisis once and for all to be announced at a G20 meeting in Cannes at the beginning of November.