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Slovakia To Kill The Euro?


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HOLA441

Skoda is a wholly owned subsidiary of Volkswagen.

Skoda had a monopoly in car manufacturing in Czechoslovakia until the 1989 'Velvet Revolution'. After this the Czech government started looking for a commercial partner to revitalise its Skoda factories.

In 1991, Volkswagen took a 30% stake in Skoda and started work in training and educating the workforce to Western quality standards. It invested over £2 billion in the plant, research, development and new models. Ten years later, in 2001, VW took total control of the business.

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All this is going to happen anyway.

Yes, the Euro is in a pickle regardless of the Slovakian vote, and for a host of other reasons.

The journalistic coverage is misleading too, since Sulik is objecting to the ESFS, not the Euro . . . in fact he believes the bailouts damage the currency.

As for stories of apocalypse, I think they are largely exaggerated and put about by vested interests. The banks believe the world will come to an end if they lose so much as a penny and no one could function without them. Not true. Neither Iceland nor Ireland needed a financial sector that size. And 99% of Greece could not possibly be worse off in default than under the yoke of another bailout.

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Newsflash: Country that has lived for decades with a Socialist boot on it's neck does not want to pay to have it back on their windpipe.

That would be pay to bail out a bunch of 'free market capitalists' who see no reason why they should eat the losses of their own bad investments?

I see socialism here- but it's the kind of socialism that forces the average person to make good the speculation losses of the rich.

Turns out the 'free market' is when your job is outsourced to china- but does not apply to reckless bankers and their wealthy clients who demand the state make good their losses.

Utterly pathetic.

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Guest tbatst2000

Doubt they'll block the bailout entirely.. Think they're probably aiming for a 'compromise' to reduce their share of the bailout (maybe even to zero), at which point they'll miraculously pass it.

Agreed. Their chunk of the cost is small enough that, if it comes to it, I'd imagine the others would be prepared to take it on to get the deal through. Either that or they'll cook up something like the collateral deal that Finland has.

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HOLA446

That would be pay to bail out a bunch of 'free market capitalists' who see no reason why they should eat the losses of their own bad investments?

NO.

You can't moan about 'capitalism' when banks are being taken under State control after years of State enforced artificially low interest rates. That is Socialism or more accurately Corporatism, which Mussolini correctly identified as an early stage of Fascism. There is State level corruption, with people throwing other people's money around to save their own bank balances, vanity projects and egos.

Iceland demonstrates how it should have been done although they have the advantage of a small, cohesive society.

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NO.

You can't moan about 'capitalism' when banks are being taken under State control after years of State enforced artificially low interest rates. That is Socialism or more accurately Corporatism, which Mussolini correctly identified as an early stage of Fascism. There is State level corruption, with people throwing other people's money around to save their own bank balances, vanity projects and egos.

Iceland demonstrates how it should have been done although they have the advantage of a small, cohesive society.

So- just to clarify- 'socialism' is when private investors lose their money and are then made whole by the state?

:lol: Man that is one screwed up world view you have there.

What we have here is a generation of free market apologists who have decided that they like capitalism on the way up, but prefer socialism- for the rich- on the way down- and too big to fail was their weapon of choice.

Yes the politicians are venal and self serving- but this crisis has got Wall street's finger prints all over it. They spent millions lobbying for deregulation, created an ocean of liar loans to feed their securitisation machine and then set up an entire shadow banking system to launder the money.

Trying to pretend this crisis is an evil plot by some kind of socialist conspiracy is real tin foil hat territory. No one forced the bankers to engage in an orgy of reckless lending- they did that to themselves. Yes Fanny and Freddie were the template- but the banksters ran with it and even ended up keeping some of the crap they were selling on their own books. :lol:

No one was forcing them to do this- just their own greed and short term stupidity.

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HOLA449

No prizes for anyone who can be bothered to find out what Skoda means in slovak... ;)

"Loss" or "Damage", there are endless jokes about it :) Actually it is a surname of one of the founders who bought the company in 19th century.

Btw, don't hold your breath, SaS is very small party with very limited support, even though their share of power is disproportionately large, because of very precarious coalition. Should there be need the biggest opposition party will vote for bailout if concessions are agreed.

Mr. Sulik is an interesting guy, no doubt he is one of the brighter bunnies in the Slovak politics, but it would be unwise to overestimate him. Definitely he is the only standing out figure of SaS party, which is known for their turning of coats - they made a lot of very populistic promises before elections but post elections they dropped almost all of them. Mr Sulik lived in Germany where his parents fled the communism. After he came back to Slovakia he founded quite successful business (although very uninventive, but who am I to judge...), which he sold since then. He is one of the figures in Slovak politics who actually has experience in running legal and successful business (there are many more patrons who are involved in very shady businesses).

Although I have read somewhere in this thread that he studied in Germany as well, I think it is a bit exagerrated, as far as I know he graduated in Economy only in Slovakia after his business was actually successful.

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HOLA4410

As for Slovakia surviving without the car factories it did before - they say damaged people are dangerous because they know they can survive.

You make some good points.

Upsetting large employers is hardly something politicians are likely to embrace, especially with one in three unemployed.

But everything has its price. And certainly, the German factories would not be there if it wasn't for the fact that Slovakian workers earn less than anyone else in the EU.

As a Slovakian worker, you can only draw the conclusion that 'we can have some employment, so long as we stay poor'. You can appreciate why subsidising Germans. French banks and Greeks on top doesn't sit well with the locals.

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Slovak parliament rejects EFSF in first vote, govt falls

Slovakia's government lost a confidence vote called on a plan to bolster the euro zone's EFSF rescue fund, but the package was expected to go through in a later re-vote because the outgoing prime minister planned to ask for help from the opposition.

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HOLA4418

a) keep voting until yes

b ) just change the rules

Of course.

Slovakia didn't endorse Greek Bailout 1 either. The EU worked around them.

It's actually saying, 'Fudge You' . . . precipitating another fudge up.

Markets will get nervous until the next Merkel Sarkozy rescue plan (no details) comes along, after which there will be a rally. After which someone will be downgraded.

It'll all be over by Christmas.

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"I'd rather be a pariah in Brussels than have to feel ashamed before my children, who would be deeper in debt should I back raising the volume of funding in the EFSF bail-out mechanism" said Richard Sulik.

Let's see that quote up on the BBC please.

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