European debt crisis: Germany votes on eurozone rescue package - Live

Crucial test for Angela Merkel as the Bundestag begins to debate the proposal to extend the powers of the European financial stability facility
Today's agenda
Have your say in the comments below

8.37am: Peer Steinbrck of the SPD, a former German finance minister, has also harked back to the second world war in an effort to underline the importance of the vote to Germany.

Steinbrck reminded the Bundestag about the origins of the European Union after the war, and how the union has benefited Germany.

He says the changes to the EFSF are "necessary steps to stabilise the eurozone - but they won't be enough". Greece will need an economic aid programme to become more competitive, he adds later.

8.29am: Here's a picture from the German parliament this morning

It shows economy minister Philipp Roesler and chancellor Angela Merkel waiting for the Bundestag debate to begin, looking stern and resolute.

8.20am: Volker Kauder, the head of Merkel's conservative CDU/CSU parliamentary group, has opened the EFSF debate.

Kauder rejects suggestions that the bill on the expansion of the eurozone's bailout fund, EFSF, has been rushed, saying everyone had a chance to make their voice heard. He stresses the importance of this vote, and even mentions the second world war to drum home his message that a peaceful, prosperous Europe is needed.

This is about more than expanding the EFSF. It's about our future, jobs, perspectives for a young generation.

It's not about Greece, payments to Greece, but creating a protective shield for those who need it, to prevent contagion... It's in our German national interest.

8.09am: As! forecas t, shares have fallen back in early trading. The FTSE 100 dropped 40 points, or 0.7%, at the open - with all the major European indexes falling by a similar amount.

So, traders will probably be marking time while they await events in the Bundestag.

8.00am: The German debate is just starting.

The Bundestag looks certain to approve enhanced powers for the eurozone's bailout fund on Thursday, but Angela Merkel's credibility is at stake. Will she get a convincing majority within her own coalition of Christian Democrats and Liberals - or will she scrape through with the votes of the main opposition parties, the Social Democrats and Greens?

While most of Merkel's own CDU party are toeing the party line, Horst Seehofer, the leader of its sister faction, the Bavarian CSU, is making life difficult for her. He recently disagreed with her contention that Europe would fail if the euro failed. "I don't see the connection," he stated bluntly.

As far as the CDU goes, its chief whip, Peter Altmeier, is confident. "As a chief whip, I have to be optimistic, but so far we have managed to win every single struggle in parliament, every single vote and that is going to happen again this Thursday," he told the BBC on Wednesday.

You can watch the German debate live here

7.49am: City traders believe the stock markets will lose ground again this morning, at least until the German vote on the EFSF has been concluded. Last night the Dow Jones index fell 1.6%, after the FTSE 100 has shed 76 points.

Chris Weston of IG Markets warned that:

In what is becoming an increasingly common theme, investor sentiment faltered once again yesterday over the outlook for successfully navigating the eurozone debt crisis.

7.38am: Here's a breakdown of some of the key timings today:

The ! Bundesta g will start debating the EFSF expansion at 9am CET (8am BST)
Voting is expected to begin at 11am CET (10am BST)
The EU summit in Warsaw is taking place all day
Eurozone consumer confidence data is released at 11am CET (10am BST)
Revised US second-quarter GDP is released at 8.30am EST (1.30BST)

7.31am: Good morning, and welcome to our rolling coverage of the European debt crisis. Later this morning, the German Bundestag will vote on the proposal to enlarge and extend the eurozone rescue packaga.

Angela Merkel is likely to win the vote, but may lose the support of some members of her own coalition.

Elsewhere, Nick Clegg will address the EU summit in Warsaw. The deputy prime minister is expected to warn that the European Union could fragment if its members fail to work together to resolve the situation.

More strikes are expected in Greece, where international inspectors will begin to assess whether George Papandreou's administration has done enough to earn the next 8bn portion of its bailout fund.


guardian.co.uk 2011 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to ! our Terms & Conditions | More Feeds


Comments

Post a Comment

Popular posts from this blog

'Son of star wars' base in Yorkshire finally ready to open

Peace campaigners slam secrecy over $10bn Menwith Hill project that puts UK in line of fire A "star wars" inspired defence shield that will alert the US to the launch of ballistic missiles is expected to be operational from a North Yorkshire airbase before the end of the year. The Space Based Infrared System is seen as the successor to Ronald Reagan's unrealised "star wars" programme, which would have detected Soviet missiles and shot them down using lasers. The new system, which has cost more than $10bn, has taken almost two decades to build and has been subject to numerous delays and cost overruns. The imminent completion of the project at the RAF Menwith Hill base near Harrogate has revived fears that space is in danger of becoming militarised, with Britain in the vanguard. "I find this disturbing to say the least," said a local Labour MP, Fabian Hamilton. "It's as if they are saying this is a place in the US and you are foreigners. But ha
Keep reading

Wisconsin governor prank called

Republican is duped by a caller pretending to be one of the rightwing Koch brothers, two of his wealthiest backers The Republican governor at the centre of the union-busting protests in the US has been embarrassed by a prank call that he believed was from one of his billionaire backers. On the recording of the call, which has been released online, the Republican governor of Wisconsin Scott Walker tells a caller impersonating one of the rightwing Koch brothers that he is looking forward to flying to California to celebrate with them once the battle with the unions was won, and jokes about taking a baseball bat to slug Democratic leaders. Walker is under siege in his office in the state capitol building in Madison, Wisconsin, in a backlash against his proposed legislation to remove unions' right to collective bargaining and cut public sector workers' pay. Ian Murphy, who calls in pretending to be David Koch, suggests planting troublemakers among the protesters, who have been peac
Keep reading

As China Rolls Ahead, Fear Follows

Image
As China Rolls Ahead, Fear Follows - China kept economy growing in past couple of years by printing money. Now it's feeling consequences. Inflation in consumer prices, speculative bubble in property. Milk dearer in Shanghai than in New York Agence France-Presse — Getty Images China is looking to restructure its economy away from dependence on exports like textiles. For nearly two years, China’s turbocharged economy has raced ahead with the aid of a huge government stimulus program and aggressive lending by state-run banks. But a growing number of economists now worry that China — the world’s fastest growing economy and a pillar of strength during the global financial crisis — could be stalled next year by soaring inflation, mounting government debt and asset bubbles. Two credit ratings agencies, Moody’s and Fitch Ratings , say China is still poised for growth, yet they have also recently warned about hidden risks in its banking system. Fitch even hinted at the
Keep reading