Greece’s third bailout is approved
GREECE’S third bailout cleared one of its last hurdles after the German parliament voted in favour of the aid package of as much as € 86 billion (R1.22 trillion).
Germany’s lower house backed the programme following a three-hour debate yesterday, with 454 in favour, 113 against and 18 abstentions. A breakdown showing the number of dissenters within Chancellor Angela Merkel’s Christian Democrat-led bloc was to be released later.
The Bundestag approved the bailout after a week of hard lobbying from Merkel and Finance Minister Wolfgang Schaeuble to stem a possible revolt within their caucus.
Merkel voiced confidence on Tuesday that the International Monetary Fund would help provide loans, while Schaeuble told lawmakers yesterday that extending Greece’s financial lifeline is in Europe’s interest. The Social Democrats, Merkel’s coalition partner, and the opposition Greens also supported the measure.
Doubts
“After the experiences of the past months and years, there are no guarantees that all this will work and doubts are always allowed,” Schaeuble told lawmakers in Berlin. “Given the fact that the Greek parliament has already adopted a large part of the measures, it would be irresponsible not to seize the chance for a new start in Greece.” Bailout opponents argue Greece is in a debt trap and that policy makers are bending euro-area rules to hold the currency union together.
Bild, Germany’s most-read newspaper, said in an editorial opposing the programme that “it doesn’t offer a rescue – not for Greece, not for the euro and certainly not for Europe” after “five wasted years of rescue policies.”
“Greece won’t make it in the euro zone and we won’t succeed at keeping the euro zone together by force against the will of the people,” said KlausPeter Willsch, a lawmaker in Merkel’s Christian Democratic Union. “If we don’t allow the euro zone to breathe, and that means to allow Greece to exit now with its own currency,” then the euro will fail.
For all the dissent, approval ratings for Schaeuble and Merkel are among the highest for German politicians. – Bloomberg