Among EMU countries, the ratification of EFSF reforms by the Slovak parliament is subject to the highest degree of uncertainty. Even though Slovakia's government, led by PM Iveta Radicova, officially supports the reforms, the junior coalition partner Freedom and Solidarity Party (SaS) strongly opposes the endorsement of the euro-zone rescue package. The euroskeptic party holds 22 of 79 seats in the governing four-party coalition which itself has a four seat majority in the 150-member parliament. Richard Sulik, the leader of SaS, required Slovakia to be the last country voting on the EFSF reform. It is now expected to go to parliament on 25 October. Without SaS support, PM Radicova would have to team up with the largest opposition party, the social democratic Smer-SD, to ratify the euro zone rescue package. But Smer-SD leader, former PM Robert Fico, said his party would back the proposal only if the coalition voted for it unanimously.

In the event that the government fails to secure its own majority, a break-up of the coalition seems likely. A first concession by PM Radicova to SaS on Tuesday was an offer that the government authorities would have to vote on all individual EFSF disbursements. SaS dismissed the proposal but also said it would not be opposed to negotiations in general. Sunday evening, for example, a high ranking SaS MP demanded on TV that a holding company should be set up where borrowing countries would deposit assets against loans, a proposal similar to the Finnish request for collateral. Although PM Radicova has so far stopped short of tying the vote on the EFSF to a confidence vote, such a move would become more likely if SaS can be pushed into a more defensive position by facing sufficiently generous offers. With four more weeks before the vote is to be held, the government looks likely to engage in some more haggling and face increasing pressure from European partner countries as well as institutions such as the central bank and the Slovak president which have already raised their voices. The outcome of Finland's attempt to secure some loan collateral should prove interesting, and may serve as a template for a Slovak solution.