Wednesday, August 31, 2011

Rescue Fund Hits Snags in Germany and Finland

Wall Street Journal
August 31, 2011

German Chancellor Angela Merkel is weighing whether to yield to a demand by some lawmakers for a bigger voice in future debt bailouts as a condition to win her party's approval for a stronger euro-zone rescue fund, as a parliamentary vote on the issue was delayed a week.

Granting the German parliament the right to approve or reject future bailouts could trigger similar demands from parliaments across the euro zone, whose lawmakers are closely observing Berlin's actions. That could lead to further delays in the EU's approval for the Greek rescue.

The German vote on the European Financial Stability Facility was postponed Tuesday to Sept. 29 because some lawmakers want to participate in events surrounding Pope Benedict XVI's visit to Germany Sept. 22 to Sept. 25, said Michael Meister, deputy parliamentary leader of Ms. Merkel's Christian Democrats.

At issue is securing German parliamentary approval for a deal Ms. Merkel brokered with other European leaders in July to keep the debt crisis from spinning out of control. Conservative opponents of the deal worry it will open the door to relinquishing more sovereignty to the European Union.


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