Mobile Version
Free Internet Press
  Uncensored News For Real People


FIP Year In Review

FIP Month in Review

FIP Archive Search




2014-07-09
R.I.P. William 'Bill' Herbert Kelder - Intellpuke

2013-11-28
Gamers Donate 37,500 Pounds Of Food To Needy

2013-09-30
Statement From The Whitehouse Regarding The Government Shutdown

2013-09-29
An Open Response To 'Organizing for Action'

2013-08-26
Bayou Corne: The Biggest Ongoing Disaster In The U.S. You Have Not Heard Of

2013-04-21
Boston Mayor Hopes Feds 'Throw the Book' at Marathon Bombing Suspect

2013-04-19
Boston Police Closing In On Suspects

2013-04-15
2 Explosions At Boston Marathon. 2 Dead, Many Injured.

2013-01-03
The Press vs Citizens Rights and Privacy - Act 3

2012-12-30
CBS News - Year In Review 2012

Nature.com - 366 Days: 2012 In Review

The Guardian - 2012 In Review: An Interactive Guide To The Year That Was

TruTV - The Biggest Conspiracy Theories of 2012

Colbert Nation: 2012: A Look Back

FIP Year In Review(s?)

2012-12-25
Happy Holidays

2012-12-21
Welcome To A New Era!

2012-12-16
An Open Letter To United Health Care, Medcom, And The Medical Insurance Industry In General

2012-11-17
Whitehouse Petition To Remove "Under God" and "In God" From Currency And The Pledge.

2012-11-15
December 21, 2012

2012-11-11
If Hillary Clinton Ran For President, She Would Probably Be The Best-prepared Candidate In American History

2012-11-10
CIA Director David Petraeus Resigns After FBI Investigation Uncovers Affair With High-Profile Journalist

FIP Format Update

2012-11-07
Thank you for voting.

2012-11-06
Live Election Results

2012-09-30
FIP In Hiatus

2012-09-18
U.S.-Afghan Military Operations Suspended After Attacks

Iran Nuclear Chief Says IAEA Might Be Infiltrated By 'Terrorists And Saboteurs'

Romney Stands By Gaffe

2012-09-17
President Obama Says China Trade Practices Harm American Auto Parts Workers


Emergency Bailout - German Parliament Agrees To Spanish Bank Aid
2012-07-20 03:37:03 (118 weeks ago)
Posted By: Intellpuke

Germany's parliament, the Bundestag, on Thursday approved up to 100 billion euros in aid to Spanish banks, to be paid by the euro backstop fund EFSF. But despite supporting the measure, the opposition in Berlin is losing its patience with German Chancellor Angela Merkel's euro bailout policies.

As had been widely expected, a special session of German parliament on Thursday overwhelmingly approved emergency aid for Spanish banks from the temporary euro bailout fund, the European Financial Security Facility (EFSF).

A total of 473 of the 583 lawmakers present in the Bundestag voted in favor of the measure with Merkel's conservatives combined with the business-friendly Free Democrats, her junior coalition partner, offering broad support. Still, initial reports indicate that 22 lawmakers from Merkel's coalition voted against the package, reflecting growing skepticism of the chancellor's course in the euro crisis.

Despite sharp criticism of Merkel's handling of the euro crisis during the pre-vote parliamentary debate, the center-left Social Democrats and the Greens voted largely in favor of the aid package. The far-left Left Party voted against it.

The aid program is to have a duration of 18 months and is worth a maximum of €100 billion ($123 billion) though it is thought that Spain will only borrow some €62 billion. The emergency loan will be paid out in several tranches through the end of the year. Spain officially requested the bailout on June 25 after weeks of rising concern over the state of the country's banks, struggling under billions in bad debts related to the collapse of the Spanish real estate market in 2009.

(story continues below)




Spain had initially been reluctant to request bailout funds due to previous rules that the bailout fund could not provide aid directly to banks and that any such assistance package would include strict austerity requirements. But unrest in the financial markets ultimately made the move unavoidable, as interest rates on Spanish sovereign bonds shot upward due to investor fear that Madrid would be unable to shoulder the burden of bailing out its banks on its own.

'A Difficult Path'

Furthermore, at a summit agreement in late June, European leaders agreed to change the rules governing the bailout fund, allowing the EFSF to loan money directly to Spain's national bank bailout fund FROB.

Still, several conditions have been attached to the aid program, including stricter oversight of banks receiving support from FROB and a ceiling on the salaries of executives working for those banks. Furthermore, the European Commission will monitor Spain's adoption of reforms requested by the European Union, including an increase in the retirement age, tax reform and measures to liberalize the country's labor market.

German Finance Minister Wolfgang Schäuble defended the aid package during parliamentary debate prior to the vote saying that difficulties in Spain's financial sector could become "a problem for the financial stability of the euro zone." He emphasized that Spain alone is responsible for the repayment of the loan package.

Opposition leaders voiced vehement criticism of the government on Thursday, with Social Democratic floor leader Frank-Walter Steinmeier accusing Merkel of not having a clear plan and of not doing enough to explain to German voters what the on-going euro crisis holds in store. "We have to say that this will be a difficult path, that it will take a long time and that it will include significant burdens for our own country," he said. "You should have been explaining it every day since May 2010," he said, addressing the chancellor, "but you don't because you fear the collapse of your coalition."

Thursday's vote took place during parliament's traditional summer recess, but members of parliament were called back to Berlin in a rare move. On June 29, Bundestag President Norbert Lammert, of Merkel's conservatives, admonished parliamentarians heading out on their holidays: "Don't swim too far out and make sure your carry-on baggage is within close reach."

Intellpuke: This article is a compilation of reporting by Spiegel Online journalists and various news agencies; you can read it in context here: www.spiegel.de/international/germany/germany-approves-euro-bailout-payment-to-spanish-banks-a-845396.html

Email To A Friend
Email this story to a friend:
Your Name:
Their Email:
 
Readers Comments
Add your own comment.
(Anonymous commenting now enabled.)

Creative Commons License
Free Internet Press is licensed under a Creative Commons Attribution 3.0 United States License. You may reuse or distribute original works on this site, with attribution per the above license.

Any mirrored or quoted materials may be copyright their respective authors, publications, or outlets, as shown on their publication, indicated by the link in the news story. Such works are used under the fair use doctrine of United States copyright law. Should any materials be found overused or objectionable to the copyright holder, notification should be sent to editor@freeinternetpress.com, and the work will be removed and replaced with such notification.

Please email editor@freeinternetpress.com with any questions.

Our Privacy Policy can be viewed at https://freeinternetpress.com/privacy_policy.php

XML/RSS/RDF Newsfeed Syndication XML/RSS/RDF Newsfeed Syndication: http://freeinternetpress.com/rss.php

XML/RSS/RDF Newsfeed Syndication XML News Sitemap