Radicova proposes solutions to EU debt crisis

photo (c) The Daily

In an interview for news portal Bloomberg in the US, Prime Minister Iveta Radicova said that pouring more money into the European Union bailout fund was “not an option” for resolving the EU debt crisis.

Radicova said the EU should look for other ways of trying to restore confidence in its currency, thereby reiterating statements made last week by finance minister Ivan Miklos.

The PM also said that Slovakia would be willing to put more money into the EFSF fund only if private bond investors played their part in the losses. She also pointed to the possibility that countries in trouble could declare default, saying that this was nothing new, and that it would force private investors to share in the losses.

So far bail-out loans have been granted to Greece and Ireland, but Radicova feels that the EU is maybe being too greedy when it comes to the interest rate slapped on these loans, as it is making a profit in excess of 3%. She mentioned Ireland as an example, as it will be paying back its loan to the EU at an average interest rate of 5.8%, which does not help the situation, she noted.

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