Markets|9/29/2011 @ 8:30AM
Germany’s Merkel Gets Votes To Expand European Bailout, Markets Relieved
UPDATE – Chancellor Angela Merkel secured her majority on a vote to ratify the new EFSF. 523 votes backed an expansion of powers and funds for the EFSF, 85 voted against, and 3 abstained. Merkel maintained a majority within her coalition by 4 votes.
Markets breathed a sigh of relief on both sides of the Atlantic after the vote, with indexes in Germany, Italy and France notching narrow gains, while U.S. index futures pointing sharply higher an hour before the bell and the Dow Jones industrial average potentially heading for a triple-digit gain.
Some background: The size of the EFSF has been the largest issue these last weeks, with many saying that its €440 billion capacity is too small to support the euro zone nations and banks that are weighing against the stability of the euro. The facility would need something more like €2 trillion, or even €5 trillion, argues Forbes’ Bob Lenzner, to start looking like a successful rescue plan.
http://www.forbes.com/sites/heatherstruck/2011/09/29/euro-hangs-in-balance-as-
key-votes-take-place/
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