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Politics : Formerly About Advanced Micro Devices

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From: tejek9/29/2011 11:28:58 AM
1 Recommendation  Read Replies (6) of 1575173
 
German lawmakers approve bigger EFSF

Merkel maintains crucial support of her center-right coalition

By William L. Watts, MarketWatch

FRANKFURT (MarketWatch) — The German parliament on Thursday voted overwhelmingly to increase the size and flexibility of the euro-zone rescue fund, providing an important victory for Chancellor Angela Merkel as she battles growing public skepticism over the country’s role in bailing out its currency partners.

In a closely watched vote, 523 members of the Bundestag, the lower house of parliament, voted in favor of the enhanced powers, while 85 voted against and three abstained.

Passage had been seen as assured. More crucially, Merkel’s ruling center-right coalition provided 315 votes, news reports said, meaning she didn’t have to rely on the backing of opposition parties to win passage of the measures.

Merkel had struggled in recent weeks to limit defections from the coalition made up of her Christian Democratic Union; its Bavarian sister party, the Christian Social Union; and the Free Democrats, the junior coalition partner. The coalition holds 330 seats in the Bundestag.

Failure to maintain an “absolute majority” through her own coalition would have left Merkel vulnerable to calls for early elections, analysts said.

In foreign-exchange trading, the euro /quotes/zigman/4867933/sampled EURUSD +0.73% changed hands at $1.3613, up from $1.3551 in North American trade late Wednesday.

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marketwatch.com
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