Berlin: Chancellor Angela Merkel was to rally German lawmakers today to back talks for a new Greece bailout deal, a day after the parliament in Athens grudgingly agreed to harsh reforms.
Merkel, like Greece's hard-left Prime Minister Alexis Tsipras, faces rebels in her own party ranks, but was ultimately expected to get approval from the chamber where her 'grand coalition' commands an overwhelming majority.
On the eve of the Bundestag session starting at 0800 GMT, Merkel told conservative lawmakers she was 'absolutely convinced' the new 86 billion euro ($94 billion) rescue package was the way forward.
It was Merkel leader of the EU's biggest economy and effective bailout paymaster who spearheaded the marathon Brussels talks last weekend that brought Greece back from the brink of crashing out of the eurozone, but at a high price.
The about-face sparked violent street protest and speculation of early elections. Finance Minister Euclid Tsakalotos said his vote consenting to the lenders' terms 'will burden me my whole life.'
Merkel and her hardline Finance Minister Wolfgang Schaeuble have been harshly criticised for forcing more austerity on Greece, using the threat of a five year euro 'time-out' that had been floated by Schaeuble.
If many commentators see Merkel as being too hard on Greece, dissenters at home complain she has been too soft, leaving German taxpayers to lend out billions they are unlikely to ever see again.
Debt relief
Up to 50 lawmakers from Merkel's conservative party have warned they will vote 'No' to granting her government a mandate to resume talks.
However, that still leaves a broad majority across major party lines in the 631 seat lower house who were expected to support the proposal, which aims to help Greece and keep intact the 19 member currency union.
Schaeuble who says he personally thinks a Grexit would be best for the country nonetheless urged his party-members to vote 'Yes'.
Merkel, sometimes dubbed Europe's de facto leader, was expected to reiterate her oft-stated case that the EU will only prevail in a globalised world if all its member states stick by strict fiscal rules and reform to become competitive.
Nearing a decade in power, Merkel, who turned 61 on today, commands high approval ratings.
On the Greece question, the public mood swung between pro-EU sentiment and anger over risking public funds, according to a poll today. Asked if they backed talks on a new bailout, 46 percent were in favour and 49 percent against, said the DeutschlandTrend survey.
The vote comes a day after the ECB gave Greece some badly needed breathing space by adding 900 million euros to a financial lifeline to Greece's cash-strapped banks, which have limited ATM withdrawals to 60 euros a day per person.
Draghi also sided with the IMF in saying Greece with debts worth 180 percent of GDP will need some kind of debt relief.
The IMF, one of Greece's creditors alongside the EU and the ECB, has warned creditors would have to go 'far beyond' existing estimates for debt relief.
Its head Christine Lagarde on today reiterated the point, speaking on French radio. Asked whether the plan could work without debt relief, she said 'the answer is quite categorically, no.'
Draghi, after months of roller-coaster negotiations, also conceded that doubts remain about the 'willingness and capacity' of the Greek government to push through the economic reforms it has agreed to.
Merkel, like Greece's hard-left Prime Minister Alexis Tsipras, faces rebels in her own party ranks, but was ultimately expected to get approval from the chamber where her 'grand coalition' commands an overwhelming majority.
On the eve of the Bundestag session starting at 0800 GMT, Merkel told conservative lawmakers she was 'absolutely convinced' the new 86 billion euro ($94 billion) rescue package was the way forward.
It was Merkel leader of the EU's biggest economy and effective bailout paymaster who spearheaded the marathon Brussels talks last weekend that brought Greece back from the brink of crashing out of the eurozone, but at a high price.
Advertisement
The about-face sparked violent street protest and speculation of early elections. Finance Minister Euclid Tsakalotos said his vote consenting to the lenders' terms 'will burden me my whole life.'
Advertisement
Merkel and her hardline Finance Minister Wolfgang Schaeuble have been harshly criticised for forcing more austerity on Greece, using the threat of a five year euro 'time-out' that had been floated by Schaeuble.
Advertisement
If many commentators see Merkel as being too hard on Greece, dissenters at home complain she has been too soft, leaving German taxpayers to lend out billions they are unlikely to ever see again.
Advertisement
Debt relief
Advertisement
Up to 50 lawmakers from Merkel's conservative party have warned they will vote 'No' to granting her government a mandate to resume talks.
However, that still leaves a broad majority across major party lines in the 631 seat lower house who were expected to support the proposal, which aims to help Greece and keep intact the 19 member currency union.
Schaeuble who says he personally thinks a Grexit would be best for the country nonetheless urged his party-members to vote 'Yes'.
Merkel, sometimes dubbed Europe's de facto leader, was expected to reiterate her oft-stated case that the EU will only prevail in a globalised world if all its member states stick by strict fiscal rules and reform to become competitive.
Nearing a decade in power, Merkel, who turned 61 on today, commands high approval ratings.
On the Greece question, the public mood swung between pro-EU sentiment and anger over risking public funds, according to a poll today. Asked if they backed talks on a new bailout, 46 percent were in favour and 49 percent against, said the DeutschlandTrend survey.
The vote comes a day after the ECB gave Greece some badly needed breathing space by adding 900 million euros to a financial lifeline to Greece's cash-strapped banks, which have limited ATM withdrawals to 60 euros a day per person.
Draghi also sided with the IMF in saying Greece with debts worth 180 percent of GDP will need some kind of debt relief.
The IMF, one of Greece's creditors alongside the EU and the ECB, has warned creditors would have to go 'far beyond' existing estimates for debt relief.
Its head Christine Lagarde on today reiterated the point, speaking on French radio. Asked whether the plan could work without debt relief, she said 'the answer is quite categorically, no.'
Draghi, after months of roller-coaster negotiations, also conceded that doubts remain about the 'willingness and capacity' of the Greek government to push through the economic reforms it has agreed to.
COMMENTS
Advertisement
EU's Carbon Tax Could Cost India 0.05% Of GDP: Report "Disgrace": Greece's Main Opposition Party Slams 6-Day Working Week Greece Will Now Work 6 Days A Week, Labour Unions Call It "Barbaric" Amid Huge Row, Karnataka Pauses Bill For Reservation In Private Sector Firms Travel Influencer Aanvi Kamdar Dies After Falling Off A Waterfall Near Mumbai "I Divorce You... Your Ex-Wife": Dubai Princess Dumps Husband In Insta Post Biden Tests Positive For Covid As Age Worries Mount Biden Says Could Drop Election Bid If "Medical Condition" Emerged Russia Says It's Ready To Work With Any US Leader Track Latest News Live on NDTV.com and get news updates from India and around the world.