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Monday, August 29, 2011

German coalition lawmakers to propose compromise on EFSF

The opposition Social Democrats (SPD) and Greens said they would vote for the measure so its passage is certain. But political analysts warn that if Merkel fails to pass the measure with lawmakers from her own coalition, it could trigger a crisis of confidence and political turmoil.

"If Chancellor Merkel does not manage to get a majority of her own in the euro issue, the logical answer would be new elections," said SPD secretary-general Andrea Nahles.

But Barthle said he would make a proposal offering a compromise in the dispute over the EFSF together with colleagues from the other parties in the ruling center-right coalition.

"We will work out a procedure, on the one hand, that enables the European bailout fund to react quickly enough," Barthle told public broadcaster ARD, while noting that parliament had a right to be consulted fully when dealing with such big sums of money.

"At the end of the day, I believe we will obtain a majority," Barthle said, acknowledging that it would be a "hefty blow to the government" if this were not the case.

There are 620 seats in parliament and Merkel's coalition has 330, while the three opposition parties have 290.

Merkel said on Sunday she was sure the government benches would vote for the new measures, while Finance Minister Wolfgang Schaeuble warned coalition MPs that financial markets may doubt Europe's ability to act if they failed to do so.

Another key conservative MP, Josef Schlarmann, on Monday urged other deputies to vote against the reformed EFSF. He said Merkel had broken promises made to coalition deputies with the agreement at a EU summit meeting in July.

Source: http://ca.reuters.com

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