18 March 2011

News from a country that matters

While the Boy Wonder and Sarcoma, having burned their bridges with Colonel Daffy, strike liberal imperialist poses and get the UN to approve military action against his regime, the Krauts have abstained and continue to decide how Europe will be run. 

Openeurope reports a motion by the German Bundestag that explicitly requires the German government to rule out any purchase of government bonds from tanking Eurozone countries by the European Financial Stability Facility, in direct contradiction to last weekend's Eurozone leaders' agreement to give the EFSF precisely that authority.

Germany is the biggest (27 percent) guarantor of the EFSF bonds, followed by France (20 percent) and Italy (18 percent). The rest are relative minnows.

While the motion is not binding on Chancellor Merkel's administration, she needs Bundestag approval for any deal to increase the scope and size of the EFSF. Among those voting for the motion were members from all the parties in the governing coalition. As Openeurope observes, at Westminster this would be considered a rebellion.

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