The proposal to increase the powers of the EU’s bailout fund has been backed by the majority of Germany’s parliament. The German support for the move was highly unexpected due to some parliament members stating that they would resist the idea prior to the vote today, and many other German citizens making it clear that more money should not be spent aiding struggling eurozone economies during such a difficult time.
However, despite the apparent opposition to the bill, 523 deputies voted in favour of it and only 85 voted against the notion.
In order for the expansion to go ahead, all 17 member of eurozone must agree to commit to providing additional funding and so far, only 7 are yet to do so. If the powers of the EFSF are expanded, Germany’s financial contribution to it would increase by 88Bn euros.
Some economists have claimed that increasing the bailout fund will do little to help the situation when the deteriorating economic conditions in Greece are taken into consideration along with the possibility that the situation could seep into other economies also.
The new measures being implemented by the Greek government to reduce its deficit have sparked protests throughout Athens this week by angry public sector employees who feel the targets being set for Greece by the European Central Bank, European Commission and International Monetary Fund, are to harsh.
Although, the Greek public feel that the new measures are far too severe, without them the troika officials could refuse Greece the next instalment of their bailout package, which could result in far worse conditions for the country as it is likely it would face bankruptcy as a result.
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