The German parliament today approved the announced reforms to the European Financial Stability Facility (EFSF) made in the July 21 summit.

The vote in the Bundestag today was observed closely and feared for any surprises as Merkel loses support. Nevertheless, the vote passed with a strong majority and gave a signal to markets that Angela Merkel can still dominate where the legislation passed with 523 votes in favor of the reform against 85 opposing votes and three abstaining.