InfoAnda - German MPs green-light unpopular Greek aid

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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Africa Europe Latin America Middle East North America German MPs green-light unpopular Greek aid AFP - Saturday, May 8 Send IM Story Print BERLIN (AFP) - – German MPs approved Friday emergency aid to Greece despite strong popular opposition two days before a state election that could seriously weaken Chancellor Angela Merkel's governing coalition. In total 390 voted in favour, 72 against and 139 abstained. The bill now goes to the Bundesrat upper house and then the president before Merkel can jet to a high-stakes EU summit later Friday with the legislation in her pocket. "We must defend the stability of the common European currency. That is what this is all about," Finance Minister Wolfgang Schaeuble told the lower house parliament in a lively debate before the vote. "And at the same time we are defending the European Union. That is the decision we are taking today, in a time of great uncertainty among people and on financial markets, not just in Europe." Germany is the biggest contributor among eurozone nations to a three-year, 110-billion-euro bailout hammered out between the EU, the International Monetary Fund and Athens in exchange for drastic austerity measures. The deal has failed to soothe market concerns that Athens will default on its huge debts or that other eurozone members with shaky finances like Portugal or Spain will need help. With the euro hitting a 14-month low against the dollar and Japan and Australia expressing concern, finance ministers from the Group of Seven were due to hold a crisis conference later on Friday. Opinion polls have shown a majority of voters oppose lending Greece the 22.4 billion euros (28.2 billion dollars), but Merkel's coalition has enough votes in the upper house to ensure it will pass -- for now. The result of Sunday's legislative election in North Rhine-Westphalia, Germany's most populous state, could result in Merkel losing her majority in the upper house, eight months after winning a second term. Mass-circulation daily Bild has dubbed the aid "the fattest cheque in history." The latest survey showed 56 percent of voters thought providing aid to Greece was wrong. After months of falling ratings, surveys in North Rhine-Westphalia, home to 13.5 million voters, have shown that Merkel's centre-right coalition has its work cut out to retain its majority in the state's legislature. A group of eurosceptics who tried to stop Germany adopting the euro in 1998 filed an injunction Friday saying the aid contravenes EU regulations. "A bottomless pit has been opened," said Joachim Starbatty, a retired economics professor from the University of Tuebingen and a member of the group. But Merkel's government has said it is confident the challenge will fail. Merkel, who has also been accused in Germany and abroad of dragging her feet over aid to Greece and thereby exacerbating the crisis, wants an EU summit starting Friday to get the ball rolling on giving fiscal rules more teeth. Merkel and French President Nicolas Sarkozy issued a joint statement on Thursday ahead of the Brussels talks calling for a new "robust framework" for policing public finances. Sigmar Gabriel, head of the opposition Social Democrats (SPD), accused Merkel of "catastrophic failure" and of doing "long-lasting damage to confidence in the credibility of Germany's European policy." The centre-left SPD, until last year Merkel's coalition partners, abstained in Friday's vote because the bill did not oblige banks to contribute to the aid. Instead, German banks and insurers are making a voluntary contribution, maintaining credit lines and bond holdings for three years. A finance ministry spokesman on Friday put the value of the contribution at eight billion euros. "Speculators are Taliban in pinstripes," said Gesine Loetzsch from the far-left Die Linke, which voted against. -- Dow Jones Newswires contributed to this report -- Recommend Send IM Story Print Related Articles Five S.African extremists charged with terrorism AFP - 2 hours 25 minutes ago Afghans wary as NATO rebrands Kandahar "process" Reuters - 40 minutes ago UK-World Summary Reuters - 43 minutes ago Dow Jones falls over 250 points after market crash AFP - 57 minutes ago BP's 'dome' lowered into sea to cap US oil leak AFP - 1 hour 26 minutes ago News Search Top Stories World leaders rush contain Greek contagion Dow Jones falls over 250 points after market crash Spain scrapes out of recession Heat on euro leaders turns global Global stocks retreat as US probes Wall St plunge More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Panic sends Dow to worst ever drop Lack of sleep linked to early death: study Freddie Mac asks for fresh 10.6 billion dollar bailout Humans interbred with Neanderthals: genome analysis BP lowers dome as oil laps Louisiana island More Most Viewed » Aliens may exist but contact would hurt: Hawking Lack of sleep linked to early death: study Apple engineer loses iPhone prototype French driving veil row escalates Freddie Mac asks for fresh 10.6 billion dollar bailout More Most Recommended » Elsewhere on Yahoo! 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