Germany Approves Bailout Fund for Eurozone
- Posted on October 26, 2011 at 10:13am by
Becket Adams
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Chancellor Angela Merkel won the support of German lawmakers to increase the eurozone’s bailout fund Wednesday and indicated that private investors like banks should take a writedown of at least 50 percent on their Greek debt holdings.
What this means is that the the most economically stable country in the eurozone (a monetary and economic union of 17 European states) has just given their chancellor the green light to strengthen the eurozone’s rescue fund via leveraging (using borrowed capital in return for an expected profit).
Germany, the leader of Europe’s biggest economy, is headed to a high-stakes summit in Brussels with a strong mandate to seal a deal on Europe’s increasingly unmanageable debt crisis after the parliamentary vote. But uncertainty remained over whether European leaders would be able to nail down a comprehensive plan to solve the debt crisis.
“The chancellor will travel to Brussels today bolstered by a clear and very broad mandate from the German Bundestag,” Peter Altmaier, the deputy parliamentary leader and chief party whip of Merkel’s Christian Democratic Union, said in an interview on Deutschlandfunk radio.
Bloomberg reports:
Merkel told lawmakers that the financial risk inherent in the 440 billion-euro ($612 billion) backstop is “acceptable,” and that bondholders must give Greece a bigger break to relieve the debt load at the heart of the turmoil sweeping Europe.
The principle goal of the summit is to lower Greece’s debt level to 120 percent of gross domestic product by 2020, according to the chancellor.
“That can’t be done unless the private sector bears a considerably higher share of the burden” than the 21 percent cut in Greek debt holding envisaged at a July 21 summit of European leaders, she said.
European officials are working on several plans at once — resolving Greece’s debt situation, strengthening the continent’s banks, which are expected to take deeper losses on their Greek bonds than they had planned, making sure other eurozone nations don’t need bailouts and boosting the EU bailout fund itself.
“We have to take important decisions today,” said Luxembourg Prime Minister Jean-Claude Juncker, who also chairs the eurozone’s finance minister meetings. “But probably we will not be able to get all the smallest details in.”
Merkel emphasized the gravity of the situation by telling the German parliament the world is watching to see whether Europe and Germany would take responsibility in “Europe’s most serious crisis since the end of World War Two,” reports the Irish Examiner.
We will provide updates as they occur.
The Associated Press contributed to this story.
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Comments (47)
hauschild
Posted on October 26, 2011 at 4:39pmDoes anybody worry that “our” stock market goes up when socialism goes up (European bailouts)?
This country has no backbone – no better than Germany or any of the other pretenders.
Report Post »Ruler4You
Posted on October 27, 2011 at 11:58amThey have to have figured it out by now. It’s all or nothing. There is nothing they can do to change that. But the truth of the matter is, they just took a course over the edge. It was the only course available. When the EU fails be ready for rapid changes to economics. Steady.
Report Post »lukerw
Posted on October 26, 2011 at 4:20pmUS, UK, EU… China, Russia… Caliphate… Governments seem to act against the Will of the People… because those whom rule Know Best!
Report Post »GhostOfJefferson
Posted on October 26, 2011 at 1:08pm““That can’t be done unless the private sector bears a considerably higher share of the burden” than the 21 percent cut in Greek debt holding envisaged at a July 21 summit of European leaders, she said.”
Yeah, because the people who are working hard and who are being taxed to the eyeballs, in order to support a leviathan socialist state, clearly are bearing a high enough share of the burden. You know, the burden that they finance 100% since government doesn’t create anything. Well shame on you private enterprise, for not assuming 200% of the share like you should!
Report Post »jnobfan
Posted on October 26, 2011 at 1:31pmThe Germans are going to guarrentee the bonds so investors have nothing to lose and quite a bit to gain. This will surely become am OWS moment for Germany in the near future. A very dangerous decision IMO. The skinhead youth in Germany make our hippee losers at OWS look like Girl Scouts at a cookie sale.
Report Post »Greece on the other hand will have to submitt to “Permanent Supervision” to receive the loans. If the German people are lucky the Greek people will not be willing to give up their souverenty to the country that stepped on their grandfathers necks just 65 years ago. Let them fail you idiots. Throwing good money after bad on this scale is too dangerous.
chicago76
Posted on October 26, 2011 at 12:42pmAnybody remember the tower of Babel. I hope someone will remind the Pope of that.
Report Post »chicago76
Posted on October 26, 2011 at 12:34pmSo the northern European countries who are broke, are going to continue to subsidize the southern European countries who are bankrupt by printing money and devaluing their currencies. Look how easy life can be when you can print your own money. Take that Germans.
Report Post »DYNA
Posted on October 26, 2011 at 12:22pmComing from goverments of men that disdain Jesus the Christ. The Christ is the Anointed One Who has the Anointing. The Anointing is the burden removing, yoke distroying power of God.
Report Post »That which is of men will fail.
ed0315
Posted on October 26, 2011 at 11:54am“the green light to strengthen the eurozone’s rescue fund via leveraging (using borrowed capital in return for an expected profit” Just how are you to expect a profit from countries that produce nothing? Good luck! This is a set up back to the days of Nazi Germany where the German people are going to get dragged down by the rest of lazy Europe and this stupid Merkel is going to get run out.
Report Post »theaveng
Posted on October 26, 2011 at 12:24pmI heard a British citizen say the most enlightened thing about this whole Euro Debt deal:
“Why should we have to work until age 70, just so Stavros in Athens can retire and collect Our money at age 52?” – Good point. The EU’s system is inherently unfair. Pretty soon we’ll probably hear the Germans make the same complaint about the Greek bailout.
Or wealthy people in New York about bailing-out the lazy debt-ridden Californians.
Report Post »chicago76
Posted on October 26, 2011 at 12:39pmIf the type of incompetence Merkel exhibits is typical of Germany then I do not want to buy anything made in Germany again.
Report Post »metalurgy
Posted on October 26, 2011 at 11:49amNope, not a haircut. It’s being spun as one. This is another bailout by taxpayers.
Report Post »Lantern
Posted on October 26, 2011 at 11:16amEven though I am working and still making mortgage payments on a house that has ben for sale the past three years, it would be nice to get a “write-down” on my mortgage, but I know that will never happen, because I am the wrong color and party.
Report Post »powhatan
Posted on October 26, 2011 at 11:12ama short band aid on an even bigger fall tomorrow!
Report Post »Channel3
Posted on October 26, 2011 at 11:04amI am wondering how the hard working, industrious people of Germany feel about carrying the slacker nations of the Eurozone on their backs?
What we are seeing in EU now is comming to America.
How will the prosperous, well governed states in America feel about bailing out California that is corrupt, overburdened by illegal’s, public employee’s and unions?
Report Post »Gonzo
Posted on October 26, 2011 at 11:26amFor the average German I would imagine it confirms their long held belief of superiority to the rest of Europe.
Report Post »Eliasim
Posted on October 26, 2011 at 11:03amHear this: one can only become two, and it is why a son leaves his mother and father to join his wife. And it is by this same thing that there can not exist a One World Government. It is against the existing laws of the universe. Try as you may but it will not stand because it can not stand. Therefore it can only completely utterly disintegrate.
Report Post »Eliasim
Posted on October 26, 2011 at 11:08amAnd since men have not kept God’s Covenant, even now there are men working on behalf of the Lord in the capacity of PAC-MAN gobbling up everything. And it will lead to One and then disintegrate into a multitude.
Report Post »Eliasim
Posted on October 26, 2011 at 11:18amThe things I speak of is of the understanding of the light. The light understands the darkness, but the darkness does not understand the light.
Report Post »Eliasim
Posted on October 26, 2011 at 11:23amGlenn Beck is right. Barrack Obama isn’t the architect, and neither is George Soros, and neither is the Kings and Queens of the world. No, the architect is God Almighty.
Report Post »Eliasim
Posted on October 26, 2011 at 11:26amLittle children, these things have been planned for Seven-thousand years.
Report Post »Gonzo
Posted on October 26, 2011 at 10:46am“Deutschland, Deutschland über alles”
Report Post »SpankDaMonkey
Posted on October 26, 2011 at 10:44am.
Report Post »Warm up the Fat Lady……I think they know their done……..
carbonyes
Posted on October 26, 2011 at 11:46amLet that Fat Lady sing!
Report Post »Channel3
Posted on October 26, 2011 at 11:55amSocialism is clearly a sick, poisoned dog that needs to be put down for it’s own good and for the good of the household.
What Germany has done is the same as taking that same sick dog to the vet and prolonged the inevitable.
Report Post »TxMadMac
Posted on October 26, 2011 at 10:44amI say everybody go back to zero. Every country stand on their own. Make or break. We owe no one nothing. We help ourselves first and if there’s some left over then we can help others. The people are not the problem here, it’s the elected officials who have created this mess and they are continually making it worse. One would think common sense would prevail but it’s all about power and control and a one world order !
Report Post »Mil-Dot
Posted on October 26, 2011 at 7:12pmYou see, they think they will be able to hide from us and that there will be enough goons to protect them from us. They are wrong. We will find every last one of them. They are just buying time. Time will eventually run out.
Report Post »Centralsville
Posted on October 26, 2011 at 10:41amSooner or later, socialims fails, every time it’s tried.
Report Post »Abraham Young
Posted on October 26, 2011 at 10:41amWe should all read the economic bible, The Wealth of Nations, and remember it for how to rebuild a nation founded on real wealth – labor and capital.
Report Post »Abraham Young
Posted on October 26, 2011 at 10:39amBailout is synonymous with corruption and deception.
Report Post »snrar
Posted on October 26, 2011 at 10:35amThey can keep pouring money into this but nothing will help , It’s unsustainable and the whole system will fail it is all part of the One World Plan .
Report Post »Rothbardian_in_the_Cleve
Posted on October 26, 2011 at 10:32amThis doesn’t even come close to addressing the real issue nor is it even close to big enough to offset what is coming. This only buys time and nothing more. Oh yeah, and it will tick off the German people…can you say Kristalnacht?
Report Post »vennoye
Posted on October 26, 2011 at 10:42amCertainly wish I could say you are wrong!!! But I think you are spot on. This time….globally as the EU pulls everyone else down. Everyone has got to know where they stand and who they stand with NOW!!!!!
Report Post »Nanner-SW
Posted on October 26, 2011 at 10:54amAnd thus in order to save the sinking ship Euro from going under Germany desides to tie its ship to it in hopes of pulling it back up (or it slow its sinking). What could possibly go wrong?
Report Post »thekuligs
Posted on October 26, 2011 at 11:09amI might occassionally disasgree with you, but this time I believe the exact same. They have done nothing but prolong the inevitable.
Report Post »carbonyes
Posted on October 26, 2011 at 12:10pmRothbardian, Don’t you see? Germany is just another chess player on the board. Just as the US of A will more likely than not bail out Kalifornia, and that is probably going to be true whether Body Odor gets reelected or not. While “our government”, which has not been our government for years, is at it, it, because it sure as Hell is not us, will probably bail out Illinois and New York too. You see if you are going to destroy a nation, its’ people and her economy, you don’t want to do a half-a$$ destruction job, so you pile on enough debt to sink the ship, and just for kickers, you don’t require the states to reform their billions of give away programs, or their inflated salaries and pension benefits.
Report Post »The same is happening in Europe with Germany being the King Pin to knock over. Anyone that thinks Merkel is calling the shots in Germany, please examine your drink to see if some has slipped you a Mickey Finn. It is all apart of the Grand Scheme to institute a One World government.
There are some posters who believe that it will not work, but it doesn’t have to work. You see, he , or they in this case, who holds the gold, rules. Trust me; they hold the gold, and they will rule, for a season – a very short one.
There is One who holds the Trump Card, and He sits high in the heavenlies, on His lofty thrown, and He is about to pull the plug on the elitist progressives, who have sold their soul to the ruler of the Darkness, who is likewise about to get his plug pulled.
Centralsville
Posted on October 26, 2011 at 10:27amI don’t know how this crisis got labled the failure of capitalism when it is the failure of socialism. What is the world’s answer, more socialism. Only leading to a much bigger failure later on.
Report Post »Vechorik
Posted on October 26, 2011 at 10:49amYes, I agree that “global government = global poverty”
This video demonstration (with gumballs) proves it:
Immigration (& poverty) by the Numbers — Off the Charts
http://www.youtube.com/watch?v=qHDW7KAjYUY
This is the agenda of the new world order (with maps, living zones, dead zones, etc)
Report Post »Why is this happening?
United Nations Agenda 21 for dummies: http://www.youtube.com/watch?v=TzEEgtOFFlM
Google ICELI to see how it’s being implemented in your community
HTuttle
Posted on October 26, 2011 at 10:27amSlackers prevail!
Time to slosh down another gallon of Ouzo!
Report Post »bandi9
Posted on October 26, 2011 at 10:24amoops, kicking
Report Post »bandi9
Posted on October 26, 2011 at 10:24amso sounds like kisking the can down the road
Report Post »InversionTheory
Posted on October 26, 2011 at 10:22amAnother bailout. The concern remains… How many more?
Report Post »netmail
Posted on October 26, 2011 at 10:50amWhen I first glanced at this story, what I saw was: “Germany approves bailout fund for EVERYONE”. That’s next as soon as the pope coordinates a world government/financial system.
Report Post »