Slovakia should say ‘yes’ to Europe and strengthening the EFSF

All of Europe is closely watching the Slovak Parliament?s decision on the European Financial Stability Facility (EFSF), as are the financial markets and those who bet on defaults in the eurozone, aiming to make huge profits.

Those who do not want Slovakia to support the EFSF claim that its establishment was an ?act of economic treason? and the way to ?economic serfdom.? These declarations might be fit for day-to-day political warfare but they are exacerbating the already serious situation the European Union has to deal with today.

The main argument of those rejecting the current measures to stabilize the euro is that too much money has been allocated to the fund. The truth is that the EFSF is the most cost-saving instrument and the only real alternative at hand to efficiently tackle the European debt crisis.

In September 2011, analysts of UBS Bank estimated that if a country like Germany left the eurozone it would cost 6,000-8,000 euro per capita, or 486-648 billion euro. On the other hand, it would ?only? cost 1,000 euro per person in Germany to support the stability measures. Similar proportions of cost can be established for all member states of the eurozone.

The EFSF has already proven its efficiency in helping Ireland and Portugal. In both cases, EFSF assistance reassured markets, helped both countries bridge the refinancing gap and allowed them to restructure and consolidate. In addition, they also passed legislative bills on structural reforms and improved their fiscal position since.

Today, the existing means of the EFSF are too limited and it is therefore of crucial importance to extend its powers, in particular with regard to speculations against Italy and Spain, which could ultimately endanger not only the eurozone but the European Union as a whole.

The EFSF does not breach any EU laws, and it should be recalled that the German constitutional court ruled that all existing rescue measures were compatible with the Treaty on the Functioning of the European Union (TFEU), in particular Article 125.

If the Slovak Parliament rejects the strengthening of the EFSF, Europe?s troubles will deepen. More than one country could be brought to the brink of no longer being able to finance itself on the market, and the euro would come under increased stress again. A European Union perceived as unable to fend off the current debt crisis would lose credibility and stability to the detriment of all its citizens.

This is the reason why concerned MEPs from three different EU countries are signing this appeal to the Slovak public to urge them to stay on the European track and help strengthen the EFSF.

Slovakia has done tremendously well after joining the European Union and the eurozone, which is first and foremost to the merit of the Slovak people. In 2006, the National Bank of Slovakia issued a report demonstrating the palpable benefits of Slovakia?s accession to the European Union. One striking example was the increase of foreign trade by 50 percent. Gross Domestic Product (GDP) per capita, due to trade and foreign investment, increased from 7 to 20 percent.

As a new member state, since it joined the EU on May 1, 2004, Slovakia has received 1.76 billion euro in aid from European Structural Funds. European taxpayers’ money helped to modernize underdeveloped regions. Even before Slovakia?s accession to the EU, namely between 1992 and 2004, the country benefited from loans amounting to a total sum of 1.74 billion euro granted by the European Investment Bank.

Solidarity worked for Slovakia and with Slovakia. That should remain so.

There are many benefits to EU membership. However, European integration is not only about advantages; it is above all about solidarity and mutual collaboration to the benefit of all Europeans. Fifty years ago, these were the ideals that were at the heart of the European Project.

Slovakia is now an important actor in this project. We are convinced that the country will live up to this spirit and endorse Europe?s future now.

* Jorgo Chatzimarkakis, Frank Engel and Sergej Kozlik are MEPs. This article was first published in the Slovak daily Pravda on Saturday, October 8, before appearing in Kathimerini English Edition.