Merkel already has a bazooka to save the euro with. The Bundestag has approved a measure to expand the European recovery fund designed to recapitalize the banking sector and give much-needed credit to struggling countries.
With support from social democrats and the green party, the Germany parliament cast a resounding "yes" to the chancellor?s plan. 523 members voted for the measure and only 85 voted against or abstained. Further, Merkel was able to strengthen her center-right coalition.
Still, will this be enough? Many fear that much more is necessary. The "bazooka" is ready, but perhaps it needs more ammunition. The solution would be to leverage the fund or turn it into a bank. But Germany is resisting this strategy. Could Merkel approve it in time? The only sure thing is that she will have to demand more sacrifices from peripheral nations.
