* Slovakia torpedoes its bilateral loan to Greece
* European Commission says Slovaks breach solidarity
* Parliament approves participation in the EFSF
(adds comments from EU's Rehn)
By Martin Santa
BRATISLAVA, Aug 11 (Reuters) - Slovakia's parliament
torpedoed a bilateral loan to debt-laden Greece on Wednesday and
the European Commission reprimanded the euro zone's poorest
member state for breaching solidarity principles.
Slovakia's politicians have questioned the fairness of
calling on its taxpayers to aid wealthier countries who failed
to control debt, and the new centre-right cabinet has placed
conditions on its role in an emergency loan facility.
"I can only regret this breach of solidarity within the euro
area and I expect the Eurogroup and the Ecofin Council to return
to the matter in their next meeting," the EU's Economic and
Monetary Affairs Commissioner Olli Rehn said in a statement.
Rehn said Slovakia's decision to withhold its contribution
did not put in danger the 110 billion euro ($143 billion)
bailout package for Greece organised by the EU and the
International Monetary Fund.
"The Slovak Parliament vote will not have any negative
implication for the disbursement of the instalments of the
loan," said Rehn.
Slovakia has one of the lowest debt burdens in the European
Union with debt at around 36 percent of economic output, a point
lawmakers made when they rejected their 816 million euro share
of the IMF/EU package for Greece -- whose debt is bigger than
its annual economic output.
The parliamentary votes went in line with recommendations
from the cabinet. Only one deputy voted in favour of the Greek
loan.
"I do not consider this as solidarity if it is solidarity
between poor and rich, of the responsible with the
irresponsible, or tax payers with bank owners and managers,"
Finance Minister Ivan Miklos told the parliament.
The monthly minimum wage in the ex-communist country is 308
euros, well below the Greek minimum legal wage of 863 euros.
Teams from the IMF, European Commission and European Central
Bank are assessing Greece's progress in cutting its deficit and
pursuing labour market and other reforms before releasing the
second tranche from the 110 billion euro programme, due next
month.
SLOVAKS JOIN EURO ZONE'S SAFETY NET
Parliament did, however, approve Slovakia's participation in
a euro zone loan facility designed to aid countries in trouble.
Prime Minister Iveta Radicova's government had previously
held up the 750 billion euro loan facility, the European
Financial Stability Facility (EFSF), after objections to
bailouts became a campaign issue in a June election.
On Wednesday, parliament approved participation in the
package and agreed to contribute Slovakia's share of the
facility, which is 4.5 billion euros worth of guarantees.
Bratislava in July demanded the creation of stricter fiscal
rules in the euro zone, including a mechanism for bankruptcy for
countries with irresponsible fiscal policies, before any aid
from the EFSF fund is released.
Slovakia joined the European Union in 2004 and adopted the
euro currency in January last year.
(Additional reporting by Foo Yun Chee in Brussels; Editing
by Susan Fenton/Ruth Pitchford)
