Eurozone rescue package backed by Germany

24 May 2010

The German parliament has agreed to back a contribution of almost €150 billion to the EU rescue package of financial aid.

Germany will provide €148 billion as part of €750 billion of funds aimed at stabilising the euro and supporting struggling states within the territory.

Germany’s lower house of parliament voted in favour of participating in providing the aid by 319 votes to 73 with 195 abstentions.

The upper house provided approval following the vote while German president Horst Koehler is expected to sign off the proposal before it becomes legislation.

Wolfgang Schaeuble, German finance minister, who was quoted by the Wall Street Journal, said the move was necessary to bring stability to the eurozone.

“We are campaigning for a decisive, strong Europe. We are committed to the stability of our common European currency. We are willing to assume responsibility for this."

Angela Merkel, German chancellor, has faced opposition from other political parties within the country to her support for the packages of financial aid within the eurozone.

Earlier in the week the German financial regulator BaFin introduced a ban on naked short selling on government bonds and the shares of ten German banks.

By Jim Ottewill

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