(Repeating story from late Wednesday)
* 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)
