Berlin - German lawmakers on Monday voted overwhelmingly to endorse a second rescue package to keep Greece from a messy default that could threaten the euro. Of 591 valid votes cast in the bundestag, or lower house of Parliament, 496 lawmakers were in favor of the bailout, while 90 were against. five lawmakers abstained. Chancellor Angela Merkel now has a mandate from parliament to give her approval of the €130 billion ($174.8 billion) aid package at a meeting of Europian Union leaders in Brussels this week.
Earlier Monday, the mass-circulation Bild daily plastered the word "STOP!" over its front page, the associated Press reported. It's message to lawmakers was: "Don't keep on going the wrong way." Ms. Merkel, however, said it would be irresponsible to risk a Greek bankruptcy. Earlier Monday, the chancellor stood firm against mounting international pressure on Germany to agree to significantly boost the euro zone's firewall against financial contagion.
In a speech before the bundestag, Ms. Merkel said Germany was willing to accelerate payment into the planned European Stability Mechanism, the euro zone's permanent bailout fund, if other EU members followed suit. lieved to indicated that Germany was beginning to shift itd position on the euro-zone firewall. Germany has never categorically ruled out expanding the euro zone's firewall, but Ms. Merkel has said repeatedly the time wasn't right to discuss it.
G-20 officials, the IMF and some European leaders say such discussion are long overdue. European Commision President Jose Manuel Barroso said on Monday that EU leaders would discuss funding for the firewall at a summit in March. Many German lawmakers have said they fear the new bailout money isn't enough to put Greece on a sustainable path. Peer Steinbruck, a Social Democrat and Ms. Merkel's former finance minister during the grand coalition, said the Greek bailout was "on very thin ice" because the IMF contribution wasn't certain, nor was it clear how many private invertors would participate in the Greek debt restructuring.
"It won't be long before [the] German Parliament will have to deal with a third Greek rescue package," Mr. Steinbruck said. Ms. Merkel said there was no guarantee the second Greek bailout wpuld be a success. But she insisted the opportunity to rebuild Greece's economy was greater than the risk. She also repeated her view that the crisis present the opportunity to create a broader political union to bolster Europe's monetary union.
references by : The Wall Street Journal, Februari 28, 2012
Earlier Monday, the mass-circulation Bild daily plastered the word "STOP!" over its front page, the associated Press reported. It's message to lawmakers was: "Don't keep on going the wrong way." Ms. Merkel, however, said it would be irresponsible to risk a Greek bankruptcy. Earlier Monday, the chancellor stood firm against mounting international pressure on Germany to agree to significantly boost the euro zone's firewall against financial contagion.
In a speech before the bundestag, Ms. Merkel said Germany was willing to accelerate payment into the planned European Stability Mechanism, the euro zone's permanent bailout fund, if other EU members followed suit. lieved to indicated that Germany was beginning to shift itd position on the euro-zone firewall. Germany has never categorically ruled out expanding the euro zone's firewall, but Ms. Merkel has said repeatedly the time wasn't right to discuss it.
G-20 officials, the IMF and some European leaders say such discussion are long overdue. European Commision President Jose Manuel Barroso said on Monday that EU leaders would discuss funding for the firewall at a summit in March. Many German lawmakers have said they fear the new bailout money isn't enough to put Greece on a sustainable path. Peer Steinbruck, a Social Democrat and Ms. Merkel's former finance minister during the grand coalition, said the Greek bailout was "on very thin ice" because the IMF contribution wasn't certain, nor was it clear how many private invertors would participate in the Greek debt restructuring.
"It won't be long before [the] German Parliament will have to deal with a third Greek rescue package," Mr. Steinbruck said. Ms. Merkel said there was no guarantee the second Greek bailout wpuld be a success. But she insisted the opportunity to rebuild Greece's economy was greater than the risk. She also repeated her view that the crisis present the opportunity to create a broader political union to bolster Europe's monetary union.
references by : The Wall Street Journal, Februari 28, 2012
