The latest news from Germany shows that Angela Merkel has lost the amount of votes needed from her own party to vote for the latest EFSF bailout, reports The Telegraph.If Merkel has to rely on opposition votes to push the rescue package through, many suspect that her coalition government will collapse.
Merkel has cancelled a trip to Russia to deal with the crisis, which also faces potential opposition from the country’s constitutional courts.
The EFSF fund had been pegged at €440 billion ($638 billion). However its unclear how successful the fund could be without Germany’s support.
“Hysteria is sweeping Germany ” said Klaus Regling, the EFSF’s director.