The euro zone's poorest member, led by the new centre-right cabinet of Prime Minister Iveta Radičová, had been holding up the 750-billion euro European Financial Stability Facility (EFSF) after objections to bailouts became a campaign issue in Slovakia's June election.
But the government approved the plan on Thursday and Finance Minister Ivan Miklos promptly signed a framework agreement on the fund, removing the last big obstacle in its way.
The European Commission welcomed Bratislava's decision and added that dialogue with Slovakia would continue.
The previous leftist government of Robert Fico, which stepped down last Thursday, had endorsed the aid mechanism. But any financial assistance to richer EU states is deeply unpopular in Slovakia, a euro zone member only since January 2009.
"We want to set an example of following the rules of the game. Because of this, the government has supported the political declaration given by the previous government in May," Radičová told reporters to explain what swayed the cabinet.
Pressure on Bratislava to unblock the EFSF rose in past weeks since the fund is a crucial part of the 27-member European bloc's efforts to restore confidence in financial markets after the Greek debt crisis.
The Slovak cabinet recommended parliament support the safety net scheme but also agreed it would demand 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 fund is released.
Temporary financial support to troubled countries will have to be in line with the International Monetary Fund's policies and conditions, the government said.
Miklos, a fiscal hawk charged with slashing Slovakia's burdensome fiscal deficit, introducing further market reforms and reinvigorating the domestic economy, said he expected the parliament to debate the Slovak role in EFSF in coming weeks.
Slovakia's share in the overall 750 billion euro ($961 billion) plan is 4.5 billion euros worth of guarantees.
The country of 5.4 million adopted the single currency only in January last year and its public is angry that they have been asked to help bail out Greece, a much better off country.
Greek loan hits a snag
Consequently, Radičová's cabinet did not budge on a separate promise made to voters that it would not back aid for debt-laden Athens, agreed by European countries separately from the EFSF.
The cabinet recommended that parliament should not approve an 800 million euro ($1.02 billion) bilateral loan to Greece, which would be the Slovak contribution to the 110 billion euro EU bail-out package.
"The Greek loan is about irresponsible government policies, irresponsible behaviour of the banking sector, rating agencies, but also of the Eurostat and malfunctioning of other institutions," Radičová said.
"I'm against the loan, we are the euro zone's poorest country and this is ridiculous. Greece had been living above its means," said Silvia Habova, 27, an account manager.
The minimum wage in Slovakia, a former communist country, is 308 euros, well below the Greek minimum legal wage of 863 euros.
(EurActiv with Reuters.)