Thursday, September 29, 2011

She survives .... for the time being

Chancellor Merkel will live (politically speaking) to fight another day though if all her battles are going to be like this, she may well wish it to be otherwise.
German lawmakers voted Thursday to approve expanded powers for a European bailout fund that Chancellor Angela Merkel has said is critical to ensuring economic stability on the continent.

The overwhelming approval — by a vote of 523 to 85 — marked a major step in addressing the sovereign debt crisis that has afflicted euro-zone countries, allowing officials to move on to additional steps. The move also helped boost European stocks Thursday, and Wall Street appeared headed for gains at its opening bell.

In winning the approval, Merkel was able to round up 315 votes from lawmakers in her governing coalition, reinforcing her political standing in Germany. She also received substantial support from opposition parties.

The expansion of powers for the bailout fund will go forward if six other euro area countries approve it over the coming weeks. But Merkel may have little room to maneuver in pushing for further measures that would increase Germany’s commitments to helping its troubled fellow euro-users.
There is, undoubtedly, a sense of desperation around each new attempt to plug the unpluggable hole. The future? Well, who cares about the future? These people will no longer be in government.


  1. Unlike those that predict (and have been predicting for 6 months) the immediate demise of the euro, I cannot believe the eurocrats will give up so easily. They have a lot more tricks up their sleeves, and a lot more of our money to squander, before then.

  2. I completely agree, Budgie, and have always tried to pour cold water on all those predictions. I think people assured me about a year ago that the euro had a week to go or two at most.