German lawmakers back Merkel

By : Reuters

Published On: 2011-10-27

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01:47

German Chancellor Angela Merkel has won a mandate from her parliament - ahead of a crucial EU summit - to boost the fire power of the euro zone rescue fund.
Lawmakers overwhelmingly approved the motion which also ensures German taxpayers' money won't be poured into the fund.
Merkel also said the European Central Bank won't be directly involved - something France had favoured.
(SOUNDBITE) (German) GERMAN CHANCELLOR ANGELA MERKEL, SAYING:
"The goal of tonight's discussion will be that the EFSF with its capacity will have a great effect on the prevention of contagion and this deterrence, this impact must be great enough. There has been a broad public debate and I say it again: All models that involve the ECB are not on the agenda tonight."
But as the vote took place ECB chief Mario Draghi signalled the bank will continue to buy the bonds of troubled states - temporarily at least.
Either way it was looking like a long night for European leaders.
Merkel has considerable bargaining power and knows there's deep resentment in Germany about the bailouts of weaker states,
But she also knows there's a need for unity.
(SOUNDBITE) (German) GERMAN CHANCELLOR ANGELA MERKEL, SAYING:
"Germany can't do well if Europe doesn't. That's why the most important goal for the government must be that Europe emerges stronger from the crisis. This means Europe must become a Stability Union."
But few were expecting a detailed solution from the summit, only broad agreements.
Kirsty Basset, Reuters.

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