Czech Parliament postpones vote on European Stability Mechanism

Czech Parliament is not going to approve the new European Stability Mechanism by the end of 2011. The Senate has followed Tuesday’s decision of the lower house to postpone the vote until next year at the request of Foreign Minister Karel Schwarzenberg. A three-fifth majority of lawmakers is needed to pass the legislation. The postponement is related to the latest changes in the eurozone and reports of a looming credit crunch and economic downturn. The European Stability Mechanism is a rescue funding programme designed to succeed the temporary European Financial Stability Facility and European Financial Stabilisation Mechanism. It is due to come into effect in mid-2013.