German parliament passes expanded euro fund
BERLIN — German lawmakers today overwhelmingly approved expanding the powers of the eurozone bailout fund in a major step toward tackling the bloc’s sprawling sovereign debt crisis.
The measure had been largely expected to pass the lower house of parliament, but a lively debate ahead of the vote reflected how divided Germans remain over their role as Europe’s economic power.
Of 611 lawmakers present, 523 voted in favor, while 85 voted against it. Only three lawmakers abstained, meaning that Germany in the future will be guaranteeing loans to the bailout fund, the so-called European Financial Stability Facility, or EFSF, of up to euro 211 billion, rather than euro 123 billion so far.
The vote also highlighted tensions in Chancellor Angela Merkel’s center-right coalition that was strained by threats of dissent from many members who balked at the cost of propping up the eurozone’s strugglers.
“Today we will make an important contribution to our nation, to Europe and to the stability of the euro,” Volker Kauder, the parliamentary leader of Merkel’s bloc, said in opening remarks on the debate.
Yet Frank Schaeffler, a member of Merkel’s junior partner, the Free Democrats, argued that bailout measures have worsened Greece’s economic situation.
“Despite all arguments, the first bailout did not make the situation for Greece better, but worse,” Schaeffler said. “Expanding the fund will make the situation even worse.”
The fund expansion has to be ratified by all 17 eurozone nations to take force.
