Europe

Thursday, June 14, 2012 - 06:57

Germany: Bundestag To Vote On Fiscal Compact, ESM On June 29


BERLIN (MNI) - German Chancellor Angela Merkel's center-right government coalition and the main opposition parties agreed on Thursday on a date for ratifying the EU fiscal compact and the permanent European bailout fund ESM in the lower house of parliament, the Bundestag.

The vote is to take place on June 29. A date for the vote in the upper house, the Bundesrat representing the 16 states, has not yet been set. Merkel will meet the prime ministers of the states this afternoon in Berlin for talks on the matter.

Since ratification of the fiscal compact in Germany requires a two-thirds majority in the Bundestag and the Bundesrat, Merkel needs support from the opposition.

The government camp and the main opposition parties signaled on Wednesday that they were getting closer to a deal on the ratification of the fiscal compact. Talks between the government and the opposition are to be finalised on June 21.

The opposition is demanding that Germany lobby for a financial transaction tax at the European level and that measures to boost growth be decided along with the fiscal compact.

The government also needs to cut a deal with the regional states in order to assure a two-thirds majority in the upper house. The states have demanded from the federal government a larger share of public revenue because the fiscal compact sets tougher deficit rules than the German "debt brake" law.

--Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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