Merkel prepares to talk tough over bailout fund

Germany’s parliament is being called on to get behind Chancellor Angela Merkel before she attends today’s critical European summit in Brussels.

Merkel wants the Bundestag to agree to boost the euro zone’s 440-billion-euro European Financial Stability Fund without pouring more taxpayers’ money into it.

A strong showing vote will give her a mandate to negotiate a deal with other leaders aimed at delivering a range of measures to stop the debt crisis from spiralling.

CDU parliamentary floor leader, Volker Kauder said:

“It would be very nice if a large majority in the German Bundestag could give support to the German government for the negotiations taking place in Brussels.”

In general her EU colleagues are looking for agreement on:

The banks taking bigger losses on the money they have loaned to Greece.

A top-up to those banks’ reserves with the help of the public sector.

A beefing up of the EFSF bailout fund and getting the Italian economy back on track.

But at the end of the day will the gathering live up to its title as the summit that rescued the euro?

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