• Germany's news in English
 
Germany approves Cyprus bailout package
Photo: DPA

Germany approves Cyprus bailout package

Published: 18 Apr 2013 13:34 GMT+02:00

A final tally by the Bundestag, the lower house, showed 486 deputies voted for

the measure, with 103 against and 11 abstentions.

MPs also overwhelmingly backed a deal by eurozone finance ministers giving Ireland and Portugal an extra seven years to repay aid they have received to allow them to consolidate progress.

Eurozone finance ministers formally approved on Friday new terms for the Cyprus debt rescue that will cost far more than first thought - €23 billion rather than €17 billion.

Eurozone partners and the International Monetary Fund are to provide €10 billion of this amount while the Cypriot government will have to find the rest.

Germany will kick in about one-third of the international assistance. The debt rescue involves a radical restructuring of Cyprus's bloated banking sector, with an economy heavily dependent on financial services now expected to shrink by up to 12.5 percent over the next two years.

Finance Minister Wolfgang Schäuble had urged MPs to back the Cyprus bailout, citing the gradual recovery of other stricken eurozone members as evidence the aid-for-reforms strategy worked.

Speaking to the Bundestag, he said that countries such as Portugal and Ireland had shown that tough budget cutting coupled with international assistance could save a debt-mired country.

"Both have undertaken enormous efforts, are fulfilling the requirements of their [rescue] programmes and are on the right track," he said.

Schäuble also noted substantial progress made in the last three years in taming the eurozone crisis, with economic progress such as a hike in exports from southern European countries as well as a sharp drop in public deficits.

Striking a conciliatory note, the usually tough-talking Schäuble noted that Germany's preaching of austerity in Europe sometimes lacked compassion for the sacrifices made by the people of crisis-battered countries.

"In our country in particular where the euro crisis is not felt in everyday life we must issue a reminder that the people in Greece, Portugal and Cyprus are going through tough times," he said.

But he stressed there was "no other way" than fiscal discipline to achieve sustainable long-term stability and growth.

Polls show that Germans strongly back the crisis-fighting strategies of Chancellor Angela Merkel and her fellow conservative Schäuble, with five months to go until a general election.

AFP/jlb

The Local (news@thelocal.de)

Your comments about this article

Today's headlines
Ethics Council rejects assisted suicide law
Photo: DPA

Ethics Council rejects assisted suicide law

The German Ethics Council said the law should not be changed to permit assisted suicide in a paper published on Friday. READ  

Abandoned themepark needs 14m says Berlin
Swan Lake. An abandoned ride in the Spreewald pleasure park. Photo: DPA

Abandoned themepark needs 14m says Berlin

The iconic ruined themepark in the centre of Berlin - a long-time favourite of hipster adventurers - needs a clean-up costing at least 14 million euros, the Berlin government has revealed. READ  

Police nab Nuremberg station bomb hoaxer
File photo of Nuremberg main station: Shutterstock

Police nab Nuremberg station bomb hoaxer

Officers in Nuremberg arrested a man on Thursday evening after he called in a false bomb threat against the main train station READ  

Opinion
Angela, David...and Nigel
So near...and yet so far Photo: DPA

Angela, David...and Nigel

The rise of UKIP broke up what had been a good 2014 for Cameron and Merkel. READ  

'Dr Death' corpse museum gets go-ahead
Dr Gunther von Hagens. Photo: DPA

'Dr Death' corpse museum gets go-ahead

A Berlin court has said that infamous human taxidermist Gunther von Hagens can open a museum in the capital - over objections from local officials. READ  

Presented by Phorms Education
Phorms bilingual schools boast top-notch tech
Photo: Phorms Education

Phorms bilingual schools boast top-notch tech

As parents fret over children’s internet habits, a network of bilingual schools in Germany shows that putting computers in the classroom from an early age yields positive results. READ  

Networks scramble to patch mobile security
Chancellor Angela Merkel has herself been the victim of phone hacking. Photo: DPA

Networks scramble to patch mobile security

IT experts led by Berlin-based Karsten Nohl said on Thursday they had discovered security flaws in the mobile phone networks that would allow attackers to read users' messages. READ  

Turkish 'spies' arrested at Frankfurt airport
Photo: DPA

Turkish 'spies' arrested at Frankfurt airport

Three men suspected of being Turkish agents have been arrested by police, federal prosecutors said on Thursday. READ  

Tax take jumps 7.3 percent in November
Finance Minister Wolfgang Schäuble is having an excellent month. Photo: DPA

Tax take jumps 7.3 percent in November

Germany collected 7.3 percent more in tax in November 2014 than the same month last year thanks to the strengthening economy, the Finance Ministry said in its monthly report on Thursday, while pollsters found rising consumer confidence. READ  

Ramelow bunks off his first Bundesrat sitting
Bodo Ramelow looking low on energy at a sitting of the Thuringia state parliament. Photo: DPA

Ramelow bunks off his first Bundesrat sitting

Controversial new Thuringia minister-president Bodo Ramelow of the Left (Linke) party missed his first session of Germany's second house of parliament, the Bundesrat, to go on holiday with his family. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Willy Brandt at his inauguration in 1972. Photo: DPA
National
Willy Brandt: the man, the chancellor... the airport?
Dresden skyline and river by night. Photo: DPA
Politics
What does Dresden have against Muslims?
Sponsored Article
Why are these International Baccalaureate students cheering?
Germany's national football team lifts the World Cup trophy
Gallery
Germany's most-Googled words of 2014
National
Why has The Local got a new logo?
Photo: DPA
National
This German was abducted and tortured by the CIA
Culture
10 top tips for partying in Germany
Sponsored Article
Top ten gifts for an expat Christmas
Photo: DPA
Technology
What does the Chancellor see as the future of the internet?
Photo: DPA
Culture
Stuff your face with these festive German cookies
Photo: DPA
Culture
What do beer, breakfast cereal and dildos have in common?
Culture
The Local's guide to German Christmas markets
Sponsored Article
Top five quirky Christmas jumpers
Photo: DPA
Culture
Get ready for Christmas like a German. We tell you how.
Photo: DPA
Munich
She did what with her dead mother?
Photo: DPA
National
Germany still paying for crisis fall out
Photo: DPA
Culture
Saxon wurst is the worst, Christmas market declares.
Photo: DPA
Politics
Can 'sorry' ever be enough for the Linke?
Sponsored Article
Shop Christmas gifts at Debenhams international store
Photo: DPA
Berlin
The Local's series on 25 years since the fall of the Berlin Wall
Shutterstock
Sponsored Article
Offer: Unlimited airmiles through December 19th
Photo: DPA
Gallery
See how Berlin has changed in 22 photos
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,185
jobs available
The Local Spain is hiring!
The Local is seeking a new editor for our site in Spain to join our growing team of internationally-minded, driven, ambitious and clued-up journalists.
Details and how to apply
Toytown Germany
Germany's English-speaking crowd