Photo: Thumbs up for Angela Merkel as parliament approves the expanded bailout fund. BBCGermany Approves Reforms to Euro Bailout Fund -- CNBC
Germany's parliament has approved reforms to the European Financial Stability Facility (EFSF) that would allow the fund to participate in the primary market and to recapitalize European banks in a much-anticipated vote in the Bundestag.
The vote in the Bundestag, which was set to be another milestone – and another drama in the travelling circus of Europe's crisis response – seems to have passed without major incident, as potential rebels within Chancellor Angela Merkel's ruling coalition were contained. 523 lawmakers voted in favor of the reform, with 85 opposing and three abstaining.
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My Comment: I am very skeptical that this will work. You cannot change a people's culture, and in Europe many countries have a culture of profligate spending and fiscal indiscipline. Grrece may have its bailout today, but tomorrow who is to say that they will correct the policies and mindset that got them here in the first place .... I am betting that they will not, and the mess that we are in today will only be repeated again at some future date.
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