[SantaGanstag]

Euro bail-out in doubt as ‘hysteria’ sweeps Germany

London Telegraph
August 29, 2011

Mrs Merkel has cancelled a high-profile trip to Russia on September 7,
the crucial day when the package goes to the Bundestag and the
country’s constitutional court rules on the legality of the EU’s bail-out
machinery. If the court rules that the €440bn rescue fund (EFSF)
breaches Treaty law or undermines German fiscal sovereignty, it risks
setting off an instant bushfire across monetary union.

The seething discontent in Germany over Europe’s debt crisis has spread to
all the key institutions of the state. “Hysteria is sweeping Germany ”
said Klaus Regling, the EFSF’s director.

German media reported that the latest tally of votes in the Bundestag shows
that 23 members from Mrs Merkel’s own coalition plan to vote against the
package, including twelve of the 44 members of Bavaria’s Social Christians
(CSU). This may force the Chancellor to rely on opposition votes,
risking a government collapse.

[86GlSqSK]

If the EU bailout fails to pass muster, the resulting financial conflagration may trigger the next global financial crisis.