Bloomberg News

German Coalition Says Parliament Vote Not Needed on IMF Loan

December 13, 2011

Dec. 13 (Bloomberg) -- Leaders of Chancellor Angela Merkel’s ruling coalition said a parliamentary vote won’t be needed on Bundesbank loans to the International Monetary Fund to tackle the European debt crisis.

Michael Meister, a vice chairman of Merkel’s Christian Democratic-led caucus in parliament, said the lower house, or Bundestag, doesn’t need to vote on loans aimed at increasing the IMF’s lending capacity because it doesn’t affect Germany’s federal budget. Free Democratic floor leader Rainer Bruederle concurred, saying a Bundestag vote was not needed.

“We respect all decisions taken by the Bundesbank on its own within the established legal framework,” Meister said in an e-mailed statement today. Bruederle told reporters in Berlin that parliament must respect the Bundesbank’s independence.

Leaders at last week’s European Union summit extracted a contribution from euro central banks of 150 billion euros ($197 billion) toward the IMF’s general resources. Another 50 billion euros will come from non-euro EU states.

--With assistance from Mariajose Vera in Munich. Editors: Leon Mangasarian, Andrew Blackman.

To contact the reporter on this story: Patrick Donahue in Berlin at pdonahue1@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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