Arab Today, arab today merkel wins spanish aid vote with big majority
Last Updated : GMT 16:34:41
Arab Today, arab today
Arab Today, arab today

Merkel wins Spanish aid vote with big majority

Arab Today, arab today

Arab Today, arab today Merkel wins Spanish aid vote with big majority

Berlin - Arabstoday

German Chancellor Angela Merkel easily won a parliamentary vote on a eurozone rescue package for Spanish banks Thursday despite growing unease in her center-right coalition about the rising cost of Europe’s debt crisis for German taxpayers. Merkel, who won broad opposition support, managed to secure a simple majority from her own coalition in the Bundestag lower house of parliament, whose members were recalled to rainy Berlin from their summer recess for this one-day session. With each vote on the eurozone’s debt crisis, concern about Germany’s creeping liabilities has hardened, prompting a growing number of coalition lawmakers to rebel in recent decisions and cramping the government’s room for maneuver in European policy. The Bundestag backed the bailout by 473 votes, while 97 voted against, including 22 from Merkel’s coalition – fewer than the 26 coalition deputies who rebelled in a more far-reaching vote on the euro zone’s permanent rescue scheme, the European Stability Mechanism, last month. Appealing to lawmakers to back assistance for Madrid, Finance Minister Wolfgang Schaeuble said the slightest perceived risk of Spanish insolvency could trip up the entire 17-nation eurozone. “Any problems in the Spanish banking sector are a problem for the financial stability of the eurozone,” he said. As in June’s ESM vote, Merkel – whose tough stance on the euro crisis has boosted her popularity ahead of a 2013 federal election – fell short of the symbolically important “chancellor majority,” which would have required the support of 311 of her coalition’s 330 MPs in the 620-seat chamber. The result had largely been a foregone conclusion after the opposition said it would vote in favor. “Spain is the fourth biggest economy in the eurozone and a couple of its banks need to be stabilized,” Andrea Nahles, deputy party leader for the main opposition Social Democrats (SPD), told Reuters. “If we don’t do it, the country that suffers most is Germany, so it is in Germany’s interests to help Spain.” But some lawmakers remain concerned that bailing out Spanish banks would not address the real problems in the eurozone and was unfair. “The big countries in Europe get suitcases of money and the small countries in Europe get a ‘sparkommissar’ (austerity commissar),” said Frank Schaeffler, a backbencher from the Free Democrats (FDP), Merkel’s junior coalition partner. “That’s got nothing to do with justice,” Schaeffler, an outspoken critic of Germany’s crisis policies, told MPs. Spain applied for a eurozone bailout late last month as the state of its banking sector, laden with bad debts, deteriorated rapidly. Bankinter posted Thursday first half net profit down more than 77 percent and said it had written down 275.2 million euros against deteriorating real estate assets. The Spanish government had to offer a euro lifetime record interest rate Thursday to sell five-year bonds, highlighting Madrid’s precarious position and pushing 10-year bond yields back above the 7 percent level seen as unsustainable in the long term. Germany, Europe’s largest economy, will guarantee almost 30 percent of the new eurozone aid package, whose total value may reach up to 100 billion euros ($123 billion). Even though the opposition supported the Spanish bank rescue, Social Democrats said it would not allow direct recapitalization of banks by the euro zone’s rescue fund, which some lawmakers worry would be the next step. “If the majority of us still vote in favor, this is only because in our view too the damage would be catastrophic if Germany denied aid to Spain,” Frank-Walter Steinmeier, parliamentary floor leader of the SPD, said ahead of the vote. “That also means however that it cannot go on like this. There will be no direct path from the Spanish aid to permanent recapitalization of banks, at least not with us,” he said. Some lawmakers are concerned that Spanish banks, not the Spanish state, would be liable for the funds once it is transferred to the ESM from the current temporary bailout fund, increasing risks for German and other euro zone taxpayers. Under the temporary European Financial Stability Facility rescue fund, the vehicle initially used for Spanish aid, the Spanish government will be liable. The same is true for the ESM, which will take over once it is operational, but that fund is earmarked for major changes, which could eventually see it recapitalizing banks directly, but Schaeuble said the Bundestag would need to vote on such changes before they could take effect. Schaeuble needed the parliamentary approval in order to be able to commit Germany to the Spanish bailout in a conference call of eurozone finance ministers due Friday. Merkel is under heavy pressure from some EU partners to move more quickly to stem the crisis but must also heed limits set by German public opinion, parliament and the Constitutional Court, which has told the government to give lawmakers more say. The court has delayed the entry into force of the ESM, the permanent rescue fund, pending a detailed legal review of whether it violates the German constitution. The court is due to deliver its verdict on Sept. 12.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today merkel wins spanish aid vote with big majority Arab Today, arab today merkel wins spanish aid vote with big majority

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Rebel supporters flood Yemen streets

GMT 06:39 2017 Monday ,27 March

Rebel supporters flood Yemen streets
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Trump to roll back Obama clean power plan

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Nermein Al Fekki films “Foxes in the Valley”

GMT 09:58 2017 Saturday ,25 March

Nermein Al Fekki films “Foxes in the Valley”
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday