Budget Committee approves euro rescue

The planned enlargement of the euro rescue package has taken the first parliamentary hurdle. The Budget Committee voted largely for the bill and proposed by the coalition parties say the Parliament's powers in granting aid to countries in crisis. According to participants displayed beside the CDU and FDP, the SPD and Green Party MPs voted for the plans. The Left Party rejected the draft from it. By the vote of the Budget Committee, clearing the way for the crucial vote in the Bundestag on 29 September.

The governments of the euro-zone countries had agreed in July to increase guarantees for loans of euro bailout (EFSF) from 440 to 780 billion euros. Germany should therefore vouch for up to 211 billion euros - in the extreme case, the limit would be even at 253 billion euros. Moreover, is intended to give the euro rescue more action. He is highly indebted countries also allow precautionary loans and provide loans to support banks allowed. It is also envisaged that the EFSF may also buy up government bonds in order to reassure the financial markets. Whether the black-yellow coalition in parliament with a majority of the new powers of the rescue and gets the additional German guarantees existence, is considered unsafe.

Consent to the involvement of parliament

As a major problem in the eyes of many Members considered the impending erosion of the budget law, the Bundestag. Because basically, the Basic Law, according to MPs approve all federal spending and also the provision of guarantees agree. Until now it had the euro rescue package but suffice that sought the federal government before the release of assistance to individual agreement with the Budget Committee.

In the extended euro rescue members of parliament now in the draw with the Budget Committee approved the decision rights to participation process itself. Obtain in the proposed new regulation, the German representative in the decision-making body of the bailout, the consent of the Bundestag or a new special committee, until he agrees to aid for crisis-hit countries. In urgent cases, the special committee should decide on the attitude of Parliament. It aims to include at least one member of each faction. The nine members of the panel should come from the ranks of the Budget Committee and elected by the plenary. The Bundestag will always be in total charge of the decisions when it comes to the granting of the aid request from a euro area country or the change of EFSF framework contract.