German Parliament OKs fiscal pact, euro fund

The Parliament's lower house accepted the eurozone's deal

Published June 29, 2012 7:45PM (EDT)

BERLIN (AP) — The German Parliament's lower house has approved the new European budget-discipline pact and the eurozone's permanent €500 billion ($623 billion) rescue fund.

Lawmakers voted 491-111 Friday with six abstentions to back the discipline pact — the so-called fiscal compact. It's a cherished project of Chancellor Angela Merkel.

They voted 493-106 in favor of the rescue fund, the European Stability Mechanism. There were five abstentions.

The plans had support from two opposition parties. A two-thirds majority was needed for the fiscal pact because it involves an internationally binding commitment to keep Germany's deficit low.

Parliament's upper house, which represents Germany's 16 states, is expected to approve both plans later in the evening.


By Associated Press

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