• Germany edition
 
Germany approves Cyprus bailout package
Photo: DPA

Germany approves Cyprus bailout package

Published: 18 Apr 2013 13:34 GMT+02:00
Updated: 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
Oettinger blames celebs for nude photo hack
Oettinger (l) appeared to misunderstand how the internet works in his comments about the photo hack which has reportedly affected celebrities including Amber Heard (r). Photo: DPA/EPA

Oettinger blames celebs for nude photo hack

German newspapers on Tuesday ridiculed incoming EU Digital Commissioner Günther Oettinger after he blamed "stupid" celebrities for having their private nude pictures hacked and spread online. READ  

Shots fired as ‘seniors’ rob Berlin security van
Police outside the Apple Store in Berlin where a security van was robbed. Photo: DPA

Shots fired as ‘seniors’ rob Berlin security van

A gang disguised as pensioners opened fire on a Berlin security van on Monday night, escaping with cash before setting their getaway car on fire. It is the second such attack in ten days. READ  

Pickpocket fools minister at anti-crime event
Ralf Jäger in front of a sign reading "eyes open and pockets closed" at the pickpocketing awareness event. Photo: DPA

Pickpocket fools minister at anti-crime event

North Rhine-Westphalia's interior minister Ralf Jäger was pickpocketed by a magician at a press conference he called on Monday to launch a campaign against pickpocketing. READ  

Berlin heart centre fiddled transplant list
Photo: DPA

Berlin heart centre fiddled transplant list

A probe into German transplant centres sparked by an organ donor scandal has revealed 14 cases of a doctor fiddling medical records at one of Germany’s leading heart centres. READ  

Lufthansa strike hits 20,000 passengers
A stranded group of travellers from Vancouver, Canada, sit and wait at Frankfurt Airport on Tuesday. Photo: DPA

Lufthansa strike hits 20,000 passengers

UPDATE: The fourth pilots’ strike in recent weeks hit Germany’s biggest airport on Tuesday morning, with long-haul Lufthansa flights grounded at Frankfurt. Around 20,000 passengers have been affected. READ  

View from Germany
'Criminals are at work in refugee homes'
Photo: DPA/Police

'Criminals are at work in refugee homes'

A photo appearing to show a refugee being abused at a home for asylum seekers has caused outrage in Germany. The photo has been compared to those from Guantanamo Bay and Abu Ghraib. Police are now investigating six cases of abuse at three different centres. READ  

Police suspect neo-Nazis of Reichstag attack
An investigator gives a sniffer dog the scent of an object found at the scene. Photo: DPA

Police suspect neo-Nazis of Reichstag attack

Investigators believe a Molotov cocktail thrown at the Reichstag building in Berlin early on Monday morning was the work of a far-right group, a police spokeswoman said on Tuesday. READ  

Unemployment rate stagnates in September
Photo: DPA

Unemployment rate stagnates in September

Unemployment in Germany stagnated in September, as clouds continue to build over Europe's biggest economy, official data showed on Tuesday. READ  

Germany struggles with Turkey Nato mission
A Bundeswehr Patriot missile in southern Turkey. Photo: DPA

Germany struggles with Turkey Nato mission

A shortage of trained troops caused more embarrassment for Germany's military on Tuesday when it emerged that more than one in four soldiers taking part in a Nato mission in Turkey are not getting their allotted time off between deployments. READ  

Spielberg to shoot spy thriller in Berlin
Spielberg (l), Amy Ryan (c) and Tom Hanks (r). Photo: DPA

Spielberg to shoot spy thriller in Berlin

Director Steven Spielberg is to shoot his next film in Germany, the Berlin-Brandenburg Film Board announced on Monday. The Jurassic Park and Saving Private Ryan director is turning his attention to a Cold War spy thriller. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Business & Money
Immigrants have created how many German jobs?
Photo: DPA
Munich
Brit raped at Oktoberfest while going to toilet
Photo: DPA
National
Revealed: Germany's military feet of clay
Marks & Spencer
Sponsored Article
Marks and Spencer: Win €300 toward your new autumn wardrobe
Photo: Shutterstock
Society
Quiz: How good is your German?
Photo: DPA
Gallery
Thousands take to Berlin's streets for marathon
Photo: DPA
Society
'Incest should be legal,' says ethics board
Photo: DPA
Gallery
Ten noises that sound very different in German
Photo: DPA
Society
QUIZ: Can you pass the German citizenship test?
Photo: Shutterstock
Gallery
Ten German words you'll never want to hear again
Sponsored Article
Bilingual education from nursery to graduation at Phorms
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

3,157
jobs available
Toytown Germany
Germany's English-speaking crowd