Thursday, September 29, 2011

German Parliament set to boost EURO

Germany's parliament approved new powers for the crisis fund of the euro zone on Thursday, but it was not clear if Ms Merkel won enough votes from her coalition government to silence the rebels. Angela Merkel was willing to finance a series of rescue packages for countries like Greece. Parliament of Germany confirmed the 523 MPs voted to support the proposal, 85 voted against and 3 abstained.

In Germany, opinion polls suggest that the widespread opposition among members of the public and even within the coalition government of Angela Merkel had threatened to vote "No". Opposition leaders said that if Merkel's coalition had to rely on their vote, it would be a signal that her conflicts and increasingly unpopular government is complete.

Passage in the lower house seems assured, thanks to the support for opposition legislators, but the vote has highlighted the tensions in Chancellor Angela Merkel's center-right coalition, which has been strained by members who have baulked at the expense of shoring up the fighters euro area .

"Today we will make an important contribution to our nation, Europe and to the stability of the euro," Volker Kauder, parliamentary leader of the Bloc Merkel said in his opening remarks on the debate. But Frank Schaeffer, a member of the Democrats of Merkel junior partner free, argued that the rescue measures have worsened the economic situation in Greece. Merkel Christian Democrats (CDU) and their allies have been pressuring the handful of dissenters to come on line before the vote. "Despite all the arguments, the first bailout plan did no better than the situation in Greece, but worse," Schaeffler said. "The expansion of the fund will make the situation even worse."

Germany is the largest economy among the 17 countries using the euro and will bear the burden of upto 211 billion Euros, of the 440 billion Euros worth of guarantees, but critics fear it is now clear this is not enough and ask for more taxpayers money. The increased firepower of the rescue fund, the European Financial Stability Fund(EFSF) if approved, Germany would guarantee loans in the future to tune up to 211 billion euros (184 billion pounds), and € 123 billion (£ 107 billion) to date.

Opposition leaders said that if Ms. Merkel's coalition has to rely on their voices, it would be a sign that her days of unpopular government is over.


  1. insane, its B O O S T

  2. Politicians belong in jail !! Or hanging in the center on cranes. (like Iran did)


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