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German lawmakers approve EU anti-crisis plans
Last Updated(Beijing Time):2012-06-30 04:30

German parliament approved on Friday two European Union (EU)'s anti-crisis plans, namely the new fiscal pact on budget discipline and the country's some 200-billion-euro (250 billion U.S. dollars) contribution to the eurozone's permanent rescue fund.

The fiscal pact, inspired by German Chancellor Angela Merkel as a crucial crisis strategy and agreed by 25 of 27 EU nations in an earlier summit, safely secured the two-thirds majority in the vote, as Merkel's coalition has reached an agreement with the opposition Social Democrats(SPD).

The two sides have agreed on launching a Europe-wide financial transaction tax and giving more weight to economic growth.

The vote, which started at 9 p.m. local time (1900 GMT) at Bundestag, the lower house of German parliament, saw some 491 lawmakers of the 608 MPs present backed the new rules while 111 MPs said no.

In terms of Germany's injection of the European Stability Mechanism (ESM), it won support of 493 lawmakers and disapproval of 106 MPs.

The pass in Germany, Europe's largest economy and paymaster, is vital for the implementation of the eurozone's two key crisis tools, as the two-year-long debt crisis is engulfing major economies like Italy and Spain.

Bundesrat, the upper house of parliament, is scheduled to vote later Friday and is expected to pass the two crisis battle instruments.

However, the process of weighing has not ended yet. Final ratification of Germany still requires the decision on legality from the country's Constitution Court and the sign-off of President Joachim Gauck.

Meanwhile, it is worth noting the change of mood here in Germany as EU leaders agreed early Friday that the ESM fund could be used to recapitalize troubled banks directly.

German newspapers on Friday accused Merkel of having faced a "political defeat" in Brussels, while the opposition criticized her for not keeping her words.

Hours before the vote, SPD threatened to reconsider its support for the ESM since the consequence of Brussels agreement was far from clear and accused Merkel's agreement in Brussels "a 180-degree change in direction."

Merkel defended in front of lawmakers before the vote that the decision in Brussels is a "sensitive" one, and any use of bailout fund should still meet strict conditions.

She called approving fiscal pact and the ESM "an important step" towards European unity. "It shows the world that we stand by euro," said Merkel.

Source:Xinhua 
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