After the euro zone leaders agreed on July 21 to expand the powers of the European Financial Stability Facility (EFSF), the euro zone faces critical votes during this week on the expanded EFSF bailout funds by Germany, Finland and Slovenia.
The agreement in July allowed the EFSF to give out more loans to countries and to buy bonds of debt-laden nations; but on the other hand those measures require approvals from European parliaments.
Concerning Germany, the Bundestag should vote on the EFSF expanded powers next Thursday on September 29, where this critical vote represents a major test for the German chancellor, Angela Merkel, who said in an interview that Thursday's vote is not a Make or Break one. The chancellor also added that We are talking about a law here, a completely normal law. The government needs a majority. The chancellor majority is what you need when you are voted in as chancellor, or in other special personnel cases, she said.
For Finland, a parliamentary vote is also expected during this week, and should be approved as the finance minister, Jutta Urpilaninen said. The chief also told the press that I hope and I think it is likely that these changes will go through.
Last week the Euro group decided on two principles, that collateral must be available for everyone and that they include conditions, she said. What these conditions would be has not yet been decided, but it is a subject of negotiations as is the collateral model.