UPDATE: Germany Saves The Free World!

Oliver Kahn

Update: And now the upper house has approved the bailout. Stock futures just popped a little.

Original post: The lower house of Germany’s parliament has approved the eurozone rescue package.


The upper house of parliament, the Bundesrat representing the 16 states, will vote on the bill later today.

Given that Germany’s share of the loan guarantees foreseen under the European aid package will come out of the federal budget, the Bundesrat could only delay the bill but not block it indefinitely. Still, it is not expected that the Bundesrat will delay the bill.

Chancellor Angela Merkel’s CDU/CSU-FDP government coalition lost its majority in the Bundesrat earlier this month when the Merkel camp was defeated in state elections in North Rhine-Westphalia.

However, a new state government in North Rhine-Westphalia has not been formed yet, so the government can for the moment still bank on a majority in the upper house.

This involves the fund which could have up to 440 billion euros, 123 billion from Germany, built to aid troubled Eurozone nations.

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