German Lawmaker Wants Greek Bailout Vote In One Package
By Andrea Thomas
Of DOW JONES NEWSWIRES
BERLIN (Dow Jones)--The German lower house of parliament may vote on a Greek bailout program as early as next week if Greece can agree on a bailout package that finds general approval, but would prefer to vote on one package, a senior lawmaker of Chancellor Angela Merkel's center-right coalition said Wednesday.
The comments come after Finance Minister Wolfgang Schaeuble told lawmakers Tuesday that a meeting of euro-zone finance ministers may take place Thursday evening to discuss Greece's aid package provided talks in Athens about the reform program succeed. If this takes place, the lower house could vote on it as early as next week, he told lawmakers in a closed meeting, according to officials attending the session.
"We could split this package up but could also vote on it in the lower house as one package," Michael Meister, deputy parliamentary floor leader of the conservative parties, told Dow Jones Newswires. "This depends on how quick the government will be able to provide the necessary bills."
He said an inner logic would point to one vote because all aspects of the EUR130 billion bailout package are closely linked and depend on the success of the other parts. When splitting up the package, it must be ensured that there isn't any precondition that all bills have to be approved.
The Greek EUR130 billion bailout package has three aspects: the EUR100 billion aid for Greece, which includes the recapitalization of Greek banks; the EUR30 billion in guarantees that the European Financial Stability Facility will have to give to private creditors as a sweetener for a EUR100 billion voluntary debt write-down of Greece's total EUR350 billion in debt; and the guarantee from the EFSF for Greek bonds held by the European Central Bank following the private sector write-off.
However, a finance ministry spokesman said earlier Wednesday that the ministry favors splitting up the package to make a quick deal on the private sector debt restructuring possible, without specifying how the ministry would prefer the package to be split.
Am extra bill to the aid package may be needed if, as The Wall Street Journal reported Wednesday, it turns out that the ECB has made key concessions over its holdings of Greek government bonds and is willing to exchange the Greek government bonds it purchased in the secondary market last year at a price below face value.
If the exchange is part of the Greek bailout package, the EFSF will need to secure approval from German lawmakers, Meister said.
-By Andrea Thomas, Dow Jones Newswires; +49 30 2888 4126; andrea.thomas@dowjones.com
By Andrea Thomas
Of DOW JONES NEWSWIRES
BERLIN (Dow Jones)--The German lower house of parliament may vote on a Greek bailout program as early as next week if Greece can agree on a bailout package that finds general approval, but would prefer to vote on one package, a senior lawmaker of Chancellor Angela Merkel's center-right coalition said Wednesday.
The comments come after Finance Minister Wolfgang Schaeuble told lawmakers Tuesday that a meeting of euro-zone finance ministers may take place Thursday evening to discuss Greece's aid package provided talks in Athens about the reform program succeed. If this takes place, the lower house could vote on it as early as next week, he told lawmakers in a closed meeting, according to officials attending the session.
"We could split this package up but could also vote on it in the lower house as one package," Michael Meister, deputy parliamentary floor leader of the conservative parties, told Dow Jones Newswires. "This depends on how quick the government will be able to provide the necessary bills."
He said an inner logic would point to one vote because all aspects of the EUR130 billion bailout package are closely linked and depend on the success of the other parts. When splitting up the package, it must be ensured that there isn't any precondition that all bills have to be approved.
The Greek EUR130 billion bailout package has three aspects: the EUR100 billion aid for Greece, which includes the recapitalization of Greek banks; the EUR30 billion in guarantees that the European Financial Stability Facility will have to give to private creditors as a sweetener for a EUR100 billion voluntary debt write-down of Greece's total EUR350 billion in debt; and the guarantee from the EFSF for Greek bonds held by the European Central Bank following the private sector write-off.
However, a finance ministry spokesman said earlier Wednesday that the ministry favors splitting up the package to make a quick deal on the private sector debt restructuring possible, without specifying how the ministry would prefer the package to be split.
Am extra bill to the aid package may be needed if, as The Wall Street Journal reported Wednesday, it turns out that the ECB has made key concessions over its holdings of Greek government bonds and is willing to exchange the Greek government bonds it purchased in the secondary market last year at a price below face value.
If the exchange is part of the Greek bailout package, the EFSF will need to secure approval from German lawmakers, Meister said.
-By Andrea Thomas, Dow Jones Newswires; +49 30 2888 4126; andrea.thomas@dowjones.com