In a closely watched vote, the market tension eased after the German Bundestag lower house of parliament gave the Chancellor the green light to negotiate the terms of expanding the firepower of the EFSF, which explicitly on the bases that no increase in German tax money will be put on the line.

Angela Merkel now has the mandate needed to negotiate at the Brussels summit, especially as now she is cornered and has to return to the parliament for approval after they won the veto power recently over committing German money to bailout.

The vice president of the lower house said that the motion passed with 503 votes in support with 89 votes against and four abstentions.

Nevertheless, the German parliament reiterated their stance against the ECB participation saying that the ECB now will no longer need to buy bonds from the secondary market and also reiterated their refusal to financing the rescue measures from the ECB.