The German parliament will be voting today on an extension of powers for the eurozone’s financial rescue fund. The Finns voted yesterday in favor to enhance the temporary European Financial Stability Facility (EFSF), bringing it that much closer to voting in favor of the 440 million aid package to Greece.
It’s still not clear whether the Germans will pass their own measure in parliament since Merkel is finding it more difficult in convincing her fellow CDU colleagues to put up more German capital to bail out the Greeks. Shoring up the Euro is looking less of an attractive option. KGS
Eurozone holds its breath for German vote on rescue package
By Ben Chu, Economics Editor
Thursday, 29 September 2011
The German parliament will hold a crucial vote today on whether to approve an extension of powers for the eurozone’s financial rescue fund.
The Bundestag is expected to pass the legislation, backed by the opposition Social Democrats and the Green party – but the German Chancellor, Angela Merkel, is still struggling to persuade her own ruling coalition to vote in favour. If she is unable to win the support of her Christian Democrat party and their coalition partners, the Free Democrats, Ms Merkel would be expected to hold a parliamentary vote of confidence in her government. The expectation is she would lose such a vote, which would mean early elections.