German lawmakers are expected to vote Wednesday on a $93 billion bailout package for Greece, a move that would help Greece meet Thursday’s deadline to repay international creditors.
Chancellor Angela Merkel’s finance minister, Wolfgang Schaeuble, is to make the case for approving the bailout in remarks to lawmakers Wednesday. Germany is the largest single contributor to Greece’s economic bailout.
The German parliament is expected to approve the bailout, according to test votes. Sixty of the 311 lawmakers have indicated they may vote against the package.
Addressing lawmakers ahead of a vote on the bailout, Schaeuble said approval of the package is “in the interest in Greece and the interest of Europe.”
The German Parliament is expected to approve the bailout overwhelmingly despite misgivings among some conservative lawmakers.
Schaeuble, a senior member of Chancellor Angela Merkel’s Christian Democratic Party, presented the government’s argument before the vote and pointed out that the Greek government has taken big steps over the past few weeks to restore trust with its creditors.
Schaeuble, who has been one of the harshest critics of Greece, conceded that voting in favor of the bailout wasn’t an easy one for him, but that “it would be irresponsible to not use the chance for a new beginning in Greece” in light of the fact that the Greek parliament has already backed a large chunk of reform measures demanded by creditors.
With Merkel’s coalition partner, the Social Democrats, and the opposition Greens, backing the deal, the vote is set to pass easily. The vote is expected Wednesday afternoon.
Eurozone ministers approve
On Friday, eurozone finance ministers approved the first $29 billion payment of a $93 billion bailout deal for Greece after the Greek parliament approved the package earlier Friday.
Eurogroup chairman Jeroen Djisselbloem said that there were “differences” among the foreign ministers of the Eurozone, but they “managed to solve the last issues.”
Greece needs the money from international creditors by August 20, when it must repay about $3.5 billion in debt to the European Central Bank.
The Eurozone decision saved Greece from default on those debts and helped to avoid its exit from the single currency Eurozone.
International Monetary Fund chief Christine Lagarde, who took part in the meeting by teleconference, said in a statement that Greece must be given more debt relief.
“I remain firmly of the view that Greece’s debt has become unsustainable and that Greece cannot restore debt sustainability solely through actions on its own,” she said. Lagarde also said it is too soon to say whether the IMF would participate in the bailout, saying the IMF’s board will consider the matter in October.
Finance ministers at Friday’s meeting said they are willing to consider additional measures. However, several Eurozone countries have previously said they oppose any additional debt relief for Greece.
The bailout package passed the Greek parliament by a comfortable margin in early Friday, but many lawmakers from Prime Minister Alexis Tsipras’ leftist Syriza party voted against the deal.
Growing discord within Syriza could split the party and lead to early elections.
Greece has been in financial turmoil for more than five years and had already received two bailouts when it came dangerously close to defaulting in June.
Critics say Greek citizens already have endured enough financial constraint. They argue that the austerity measures introduced as conditions for the third bailout package would further damage Greece’s economy.
The government has taken several steps to try to halt the financial crisis — including closing the stock exchange for more than a month, shutting banks for three weeks and instituting limits on the amount of money Greeks could withdraw.
Some material for this report came from the Associated Press.
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