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Green light for German bank rescue plan

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Green light for German bank rescue plan

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A bank rescue plan that Chancellor Angela Merkel says will help shield Germans from the global financial crisis has been approved by parliament.

In the lower house, a large majority voted in favour of the 500 billion euro package put forward by Germany’s ruling grand coalition.

But the way in which the government has handled things is not to everyone’s taste.

Peter Struck, the parliamentary head of Merkel’s coalition partners the SPD, reflected concerns about a lack of debate. He urged the administration to work closely with parliament in implementing the measures.

After a compromise deal Merkel struck with Germany’s powerful states, there was unanimous support from the upper house, allowing the package to come into effect on Monday.

Merkel has tried to reassure Germans, saying the international financial crisis would weigh on the economy but would not lead to a lasting slump.