Germany Holds Its Nose for Another Greek Bailout
They weren't happy about it, but the German parliament voted to pickup Greece's tab once again in a bid to keep the Euro zone alliance strong, reports the BBC.
They weren't happy about it, but the German parliament voted to pickup Greece's tab once again in a bid to keep the Euro zone alliance strong, reports the BBC. By 496 to 90 vote, German MPs approved a $173 billion bailout, despite heated opposition in the press and an acknowledgement from Chancellor Angela Merkel that there was "no 100% guarantee" the plan would work. The strong vote in support of the bailout was largely due to help from two opposition parties, the Social Democrats and the Greens, but it certainly didn't help that MPs in Merkel's own party opposed the package and German's mass-circulation Bild newspaper assailed it with the headline "Stop! Don't go any further along this wrong path.''
Though Germany is saddled with paying for more of the bailout than any other country, Merkel's claim that the benefits of the package outweigh the risks eventually swayed the Bundestag, reports The Washington Post. She promised that "the opportunities outweigh the risks of turning away from Greece now — I believe these risks are incalculable and therefore irresponsible." The Post adds that "The rescue package is Greece’s second in less than two years and also involves private-sector investors accepting total losses of more than 70 percent on the bonds they hold, along with tough new austerity measures." This week, Finland and the Netherlands are slated to vote on the package next and it's expected to pass, albeit begrudgingly.