October 25, 2011
Chancellor Merkel's conservatives have bowed to pressure for a full vote in parliament on Wednesday over controversial plans to boost the euro rescue fund. Broad backing would help Chancellor Angela Merkel in EU talks on rescuing the euro, but it's a risky gambit, given the unknown number of rebels in her ranks.
Chancellor Angela Merkel, not known for taking gambles, has agreed to a full parliamentary vote on Wednesday on the planned leveraging of the euro rescue fund in a move that could strengthen her hand in EU negotiations on rescuing the euro -- but could also backfire.
Her conservative Christian Democrats (CDU) agreed on Monday to opposition party demands to hold a full vote rather than confining parliamentary involvement to a budget committee vote, as originally planned.
The decision is also aimed at allaying concerns within her center-right coalition that building up the fund could entail a greater risk to German taxpayers than the €211 billion in guarantees they have already committed.
While Germany's share of guarantees in the enlarged fund, known as the European Financial Stability Facility (EFSF), is set to remain unchanged, there are fears that the leveraging plan might make an actual payout of that money more likely, said Volker Kauder parliamentary group leader of Merkel's conservative Christian Democrats (CDU) and their Bavarian sister party, the Christian Social Union (CSU).
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