Eurozone loans threat to German coalition

Article reported that Horst Seehofer, leader of the CSU, the Bavarian sister-party of Chancellor Angela Merkel’s conservative Christian Democrats in Germany threatened to topple the government in early July 2012 should the Chancellor agree to give troubled eurozone countries emergency loans without rigorous conditions concerning budget reforms.

Separately, the article reported that the Finnish government continued to unpick parts of the deal agreed at the European Council summit in Brussels, 28-29 June 2012, issuing a statement on the 3 July 2012 that it opposed using the eurozone’s new €500bn rescue fund to purchase Italian or Spanish bonds on the open market.

ESO: Background information: Merkel faces up to stormy parliament http://www.europeansources.info/record/merkel-faces-up-to-stormy-parliament/

ESO: Background information: Spain wins restructuring of bank deal http://www.europeansources.info/record/spain-wins-restructuring-of-bank-deal/

EUObserver, 3.7.12: Finland threatens summit deal over bailout fund http://euobserver.com/19/116848

EurActiv, 3.7.12: Finns, Dutch cast first doubt on EU summit deal http://www.euractiv.com/euro-finance/finns-dutch-cast-doubt-eu-summit-news-513683

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