And Now Germany Has Thrown A New Monkey Wrench In The Europe Mess

Angela Merkel

Conservative parliamentary leader Volker Kauder will ask for a full vote in the German parliament on changes to the European Financial Stability Facility expansion plan, according to a Reuters source.

In particular, a vote would review a new proposal to leverage the fund, the details of which are still being sorted out.

Previously, only the budgetary committee needed to vote on changes to the July 21 EFSF agreement. Kauder, who is part of Chancellor Angela Merkel’s ruling coalition, will reportedly call for the new vote because of growing public debate.

This development is worrisome, even though it is unlikely to undermine a revised version of the July 21 EFSF expansion plan.

It demonstrates the widening divisions within Merkel’s coalition, which could in the future prove disastrous when further action is needed. It also remains to be seen whether the demand for a second approval will set off a string of re-votes across the euro area.

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