German parliament votes to expand eurozone bailout fund

Chancellor Angela Merkel at the Lower House of German parliament Bundestag in Berlin as lawmakers vote on legislation to expand the E.U.'s rescue fund.

Steve Chiotakis: It's a major step in the struggle to fix Europe's sprawling sovereign debt crisis. The German parliament voted 523 to 85 to expand the size and power of the eurozone bailout fund.

Marketplace's Stephen Beard is with us live from our European Desk in London with the latest on the vote. Hi Stephen.

Stephen Beard: Hello Steve.

Chiotakis: So this seems like a pretty convincing win for German Chancellor Angela Merkel, no?

Beard: On the face of it, yes. But unfortunately -- as with every other aspect of this crisis -- it's not quite as simple as it seems. Merkel has this thumping majority because she has the support of the socialist opposition, which is very pro-Europe. It's not yet clear how many members of her own party and coalition partners voted against her. That analysis is underway -- we should know fairly soon.

It might show that Merkel has been seriously undermined, and her coaltion could conceivably fall apart.

Chiotakis: Interesting. So where do we go from here, Stephen, with the bail-out of countries like such as Greece, Portugal, and the others?

Beard: There's no doubt that things are looking a bit more positive now. However, everyone acknowledges that even the expanded, enhanced bailout fund approved today won't be big enough to help -- for example -- Italy fend off default. Italy is too big. And the idea of a much bigger fund leveraging it up, to something like 5 times its current size -- around $3 trillion -- that's much more controversial in Germany. If Merkel's been seriously damaged politically, she'll struggle to get that through. It's safe to say the crisis is not over yet.

Chiotakis: It certainly isn't. Marketplace's Stephen Beard, reporting live from London. Stephen, thank you.

Beard: OK Steve.

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the euro zone know that her highess dear MERKEL ; is an good exemple for all the world women ; and her claim will never distroy her politque ; if the GERMANIA'S PEOPLE think for the feature ; we to forget how and why shi enter in yhe germani's goverment ; for improve all the europeen level around the world with wonderful capacity to repersant them in all the world meeting ; THEN the europeen heardmaster's bank have to use them brain and them responsability with wide annalize and get the courage to accept to prevent by the willing the economy for help the new and future generation ; fight against chomage and accept the world raison of immigration try to meet them young often and listen what do they wanna invest for stay in them poor nation and give them the lucky of the industrial knowledge for improve them standing at WTO their is some word headline for resolve the europeen crize and build little by little the strong union in peace and never be against U S A LIKE THE PAST IMPERFECT U R S S thank you i'm sorry this broken anglish thank you

Merkel's predicament reminds me of the German signatories at Versailles: blackmailed by forces greater than themselves into agreeing to the politically unpalatable/suicidal.
In Merkel's case, it's not just the Banks - but the EU - that are "Too Big To Fail".

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