German Lawmakers Debate Greek Bailout, Merkel Faces Rebellion

German lawmakers broke off their holidays on Tuesday to debate Greece’s third bailout plan before approving it, though Chancellor Angela Merkel faces a rebellion in a vote shaping up as her last chance to keep Athens in the euro zone.

Up to a quarter of Merkel’s conservatives could vote against the 86-billion-euro ($95 billion) package, sending the government a clear warning not to return to parliament again to ask for more aid.

Support from parties including the Social Democrats (SPD), Merkel’s junior coalition partner, and the opposition Greens means approval is not in doubt. But a rebellion by a large number of her allies would be a blow for Merkel, who remains highly popular after 10 years in office.

Merkel and Finance Minister Wolfgang Schaeuble will make the case for backing the bailout plan in party meetings on Tuesday.

Schaeuble, who last month told parliament that talks on the third bailout were a “last attempt” to solve the Greece crisis, threw his weight behind the package ahead of Wednesday’s vote and said Athens was ready to reform.

Many senior figures in the ruling coalition agreed.

Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.