Germany approved the Cyprus bailout on Thursday as expected. However, Merkel required votes from the SPD and Green Party, to do so.
One might not understand the implications when reading the Wall Street Journal report Germany Approves Cyprus Bailout.
Germany’s parliament on Thursday voted in favor of aid for troubled Cyprus by a large majority, giving Chancellor Angela Merkel’s euro-crisis policies broad backing in the face of opposition criticism ahead of fall elections.
Despite a federal election in Germany just five months away, the ruling coalition led by Ms. Merkel succeeded in convincing coalition lawmakers and the main opposition parties—the Social Democrats and Greens—that the negotiated deal serves German interests, and a rejection would rattle the euro zone and lead to a Cypriot bankruptcy.
“Germany got what it wanted from the bailout,” said Christian Schulz, senior economist at Berenberg Bank.
What vs. How
Merkel may have gotten “what” she wanted. I rather doubt she got it “how” she wanted. Reader Bernd from Germany explains …
“The falling apart of CDU/ CSU and FDP coalition is beginning to show in all seriousness now. If Bundestag needs to vote one more time before the federal elections (i.e. on Slovenia, Spain, France), the Government might not make it.”
Mike “Mish” Shedlock