Forex News – Germany votes on EFSF measures before heading to EU Summit

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Twenty-seven European leaders from the European Union member countries will soon begin discussions in Brussels at a historic summit that aims to contain the sovereign debt crisis from engulfing Italy and Spain.

However, before German Chancellor Angela Merkel heads to the meeting, she first has to get the backing of Germany’s Bundestag (parliament) on measures to beef up the euro zone rescue fund, known as the European Financial Stability Facility (EFSF) without using Germany’s balance sheet and without having to put more of German taxpayer’s money into it.

The German leader will address the lower house of the German Bundestag at noon local time before her government votes on measures to bolster the 440 billion-euro rescue fund. The coalition ensured cross-party support after persuading the main opposition Social Democrats and Greens to sign up to a motion that includes a cap on German guarantees.

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 spreading to the rest of the euro region.

“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.” German CDU party parliamentary floor leader, Volker Kauder said.