Europe's lifeline extends, German parliament to back euro crisis powers

Business

oi-Monika

By Monika Nihalani

Published: Thursday, September 29, 2011, 16:55 [IST]

Germany's chancellor Angela Merkel finally took a sigh of relief as she clears the biggest test. Germany's parliament has approved new powers for the euro zone's crisis fund, European Financial Stability Facility (EFSF) on Thursday, September 29.

Europe's largest economy – Germany is now all set to support weak economies under euro zone. The results of the voting includes 523 lawmakers backed more powers for the EFSF, 85 voted against and 3 refrained.

This would allow fund to buy bonds in secondary markets, offer precautionary credit lines and enable bank recapitalization.

With this Germany will support upto 211 billion euros of the fund's 440 billion euros worth of guarantees, though analysts say this would not be enough to meet the debt crisis, but at least this would give more time to resolve Eurozone's problems.

Nevertheless, Europe is trying in all way to overcome its economic crisis, for some time though this news is surely going to cheer investors globally.

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