No Fast Tracking Says Merkel’s Opposition
The main opposition party in Germany, the Social Democrats (SPD) has threatened to block the plan to fast track the Greek aid package in parliament. The move could delay the implementation of the critical aid package for debt ridden Greece. Carsten Schneider, the budget spokesman for the Social Democrats, told reporters that his party does not want to fast track any bill that could result in Germany guaranteeing billions of euros in aid. The move comes in advance of a critical election. Schneider stated, “We won’t go along with this. First the government can’t decide what they want to do and now they want to put us under pressure with the legislative process.”
German Politicians Wary in Advance of Election
The Social Democrats support aid for Greece but are reluctant to let conservative Chancellor Angela Merkel delay parliamentary discussion on the issue until after a key regional election in North Rhine-Westphalia. Public opinion polls show that most Germans are opposed to a Greek bailout and Chancellor Merkel has been reluctant to promise any aid in advance of the upcoming election. Merkel is fearful that any promise to aid Greece could hurt her party in the elections. The Social Democrats hope to force Merkel to accept a debate on the issue sooner than she would like. A spokesman for Merkel’s conservative party said that should Greece request aid in the coming weeks that the earliest that the cabinet could approve a bill would be May 12th and could then push the bill through both houses of parliament by May 25th.
Greek Request For Aid ‘Expected’
Investors believe that Greece will request aid in the near future but are wary that Germany could delay the aid process for political reason. A spokesman for Merkel’s party said that since Greece does not need the aid package all at once the IMF could provide the initial funds with France and Germany providing further assistance in steps. Germany is expected to provide 8 billion euros of the 30 billion aid package and France has promised 6.3 billion euros. Although Merkel’s party has a majority in Bundestag lower house any attempt to fast track legislation requires the approval of opposition parties. Opposition to the accelerated approval process is not limited to the center left Social Democrats. The conservative Christian Social Union of Bavaria has also voiced opposition to the accelerated approval process. On Wednesday German Finance Minister Wolfgang Schaeuble told parliamentary committee that the German government expected Greece to formally request aid. An unnamed member of parliament quoted Schaeuble as saying, “We have to expect it”.
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