The German parliament approves bailout package

Good morning everyone!

The EU bailout package was designed to reassure financial markets of the seriousness of European nations to handle their own financial affairs.  Needless to say, the financial markets were not reassured by the package.  Primarily the concerns seem to be focused on the inherent weakness of the EU structure.  Namely, is it possible to have a coordinated response when 27 nations must all unanimously approve a course of action?  All eyes have been focused on Germany.  Because of its heft and import to the EU, accounting for 40% of EU economic activity, if the German parliament were to turn down the aid package then the EU and its eurozone were likely to collapse.  Fortunately, the German parliament, both lower and upper houses, have approved the bailout package.  This should set the stage for the other important EU countries to also approve the package.  At this juncture, even if there is not unanimous consent, the big nations in the EU are free to act independent from the EU apparatus.  Hopefully this will quell the financial markets’ jitters.

Have a good weekend!

Jason