Germany’s lawmakers have agreed to forgive some of its loans to Greece. Fears that the country’s default would hurt the whole EU bloc overshadowed an almost a €1bn price tag for Germany.
Out of the total 584 MPs 473 voted in favour, with 100 against.
Eleven MPs abstained, according to The Guardian. The key to today’s vote was the dispute between Chancellor Angela Merkel and Social Democratic Party (SPD).
While the SPD said a Greek rescue was essential, as otherwise it would hurt the whole Europe, and Merkel was reportedly more concerned with winning votes at the September 2013 elections.
Failure to approve Greece’s revised aid package would have been a major blow to Europe, and also for the global economy, according to Germany Finance Minister Wolfgang Schäuble talking at Friday’s vote in the Bundestag.
The Finance Minister acknowledged the new measures for Greece might cost Germany up to €730mn ($950mn) next year.
Analyst estimate a full haircut of Greek rescue loans could cost Germany up to €1bn. This money will come out of the pockets of German taxpayers, which could become toxic for the current Chancellor in her election bid.
Merkel’s strategy is reported to be as follows: “Do just enough to keep Greece afloat but spare German votersfor now the news that even more of their money will be required to get the Greeks back on their feet,” as the Associated Press says.
(source: rt, AP)
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