German parliament approves expanded EU bailout fund

[dipsydoodle]

Source: BBC News 29 September 2011 Last updated at 11:43

A large majority in the German parliament has approved expanded powers for the EU's main bailout fund.

The vote was seen as a test of Chancellor Angela Merkel's authority, as some in her coalition vowed to oppose the bill.

Many Germans are against committing more money to prop up struggling eurozone members such as Greece.

There are protests in Athens where international inspectors are due for talks on further bailout funds

Read more: http://www.bbc.co.uk/news/world-europe-15107538

[pampango]

1. The European Union in crisis; Will it survive?

Until recently, the idea that the 27-nation European Union might disintegrate would have been unthinkable, for uniting a continent ripped apart by two World Wars was considered a rousing diplomatic success. But the EU's two most cherished achievements — a common currency and the free movement of people and goods across borders — are under threat. And the possibility that the decades-long experiment that is the EU might not survive in its present form has now entered mainstream debate.

The European Union was created out of the ashes of World War II: Its initial goal was to use economic integration to prevent Europe from ever going to war with itself again. By that measure it has succeeded admirably — and for that reason, some politicians greatly fear its demise.

"The game is not only about the well-being of this generation or the next generation, but is goes without saying we're also fighting for the safety of this and future generations," said Jacek Rostowski, the Polish finance minister. "It is difficult to imagine Europe to be as safe as it is now without the European Union."

Since the 1950s, the strengthening of European integration had seem slow and fitful, but also inexorable. In 1951, six countries formed the European Coal and Steel Community. In 1957, they established the European Economic Community. In 1985, the Schengen Agreement was signed with the aim of abolishing checks at the borders between member countries. In 2002, the switch from national currencies to the euro went off without a hitch — and 17 nations now share the common currency. The EU has grown from six countries to 27, and currently it is home to more than 500 million people.

http://www.google.com/hostednews/ap/article/ALeqM5gztHCnUDh_ba92VK3xTIG3TrmKTw?docId=ac0235ab640948198bc2827344672996

[Ikonoklast]

2. I really can't blame German politicians for being reticent on this.

Through no fault of their own they are put into a most difficult position.

Eurozone member countries that refuse to put their economic house in order, then squeal when austerity measures are part of the deal to save their economies are lucky that there even *is* a someone else willing to bail them out.

[DallasNE]

4. The Problem In Greece

Is in large measure because of corruption and not putting thein economic house in order but the straw that broke the camels back are the toxic jumbo housing loans that nearly brought down the American economy. The deceptive bundling of junk mortgages in with sound loans that still received AAA ratings by the rating agencies caught a lot of people flat-footed, including Greece. The criminal lack of enforcement of regulation by the Bush administration is really at the heart of the world-wide financial crisis. This country has some obligation to provide support to help shore up some of the problems in Europe (they are responsible for cleaning up the corruption on their own).

[Ikonoklast]

5. I agree.

Greece would have willingly bumped along until the next economic downturn brought the issue to a head, although it may have been less of an issue in a softer economic decline, and not a potential disaster like we are seeing here.


I pose a question to you:

Who in their right mind will purchase mortgage-backed securities from the investment banks now, knowing that what they are buying may be worthless?

[DallasNE]

6. That Is An Excellent Question

Along with trust in the rating agencies to get things right. Both screwed the pooch. Did Dodd-Frank do anything regarding how assests can be bundled? Republicans badly want to repeal Dodd-Frank. That said, it may not take repeal as Republicans could again put the fox in the hen house like Bush did at the SEC.

[Poll_Blind]

3. It's a desperate attempt to use money to pay the doctor to indead by bandaids.

It's going to fail and I think they know it's going to fail- they're just buying time.

PB