Berlin reinforces stance on eurozone rescues

Article reports that the German parliament was set to approve sweeping proposals on the 17 March 2011 to reinforce the German government's hard-line negotiating position in Brussels, ruling out any European crisis response measures that involve buying government bonds or issuing loans to help debt-strapped governments buy back their own debt.

The resolution, drafted by the government’s own supporters, seemed certain to be passed in the Bundestag just one week before a European Union summit in Brussels that hoped to agree on a comprehensive package of measures to head off any future crises in the eurozone.

The decision by German parliamentarians to set their own red lines for the German government in its negotiations in Brussels was seen as a sign of growing public concern in Germany that German taxpayers could end up paying for the bad debts of their partners.

EUObserver, 25.2.11: German right and European left square up for eurozone battle http://euobserver.com/9/31874

PES: Press Release, 24.2.11: PES Member parties call for a tough stance on economic governance http://www.pes.org/en/news/pes-member-parties-call-tough-stance-economic-governance

ESO: Background information: Merkel considers extending Greek bail-out http://www.europeansources.info/record/merkel-considers-extending-greek-bail-out/

ESO: Background information: EU leaders wrestle over revamped rescue fund / Berlin nears deal on eurozone governance http://www.europeansources.info/record/eu-leaders-wrestle-over-revamped-rescue-fund-berlin-nears-deal-on-eurozone-governance/

ESO: Background information: Eurozone summit looms amid growing hostility to Franco-German pact http://www.europeansources.info/record/eurozone-summit-looms-amid-growing-hostility-to-franco-german-pact/

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