The German Bundestag approved on the 19th Spanish bank bailout plan, to pave the way for Spain before the end of the initial rescue. According to the Associated Press reported that the German parliament approved the agreement of the EU assistance to the Bank of Spain, a total of $ 122 billion.
The same day, the Bundestag held a summer break special meeting to discuss the Spanish bank bailout plan. Ultimately, 473 of the 583 voting members vote in favor, more than half, the program is approved.
Before the vote, German Finance Minister Schaeuble urged members "to Spain sufficient time to solve the banking problems contribute to overall financial stability for the euro zone. He said the Bank of Spain is not fast rescue may influence the financing capacity of the Government of Spain, and thus the debt crisis in Europe to expand to more countries, threatening the euro area as a whole financial stability.
The same day, the Spanish government issued a ? 2.98 billion for the biennium, five and seven-year bonds yield 5.2%, 6.5% and 6.7% respectively. Same period bonds yield more than the previous issue. In the secondary market, the 10-year bond yields in Spain once again crossed the 7% "red line", was 7.03%.
Euro Group on the 10th of this month rescue package to reach agreement, final approval of the rescue in the 20th conference call. The German Bundestag approved means Schaeuble in the 20th meeting, on behalf of Germany agreed to rescue Spain.
Prior commitments in accordance with the Euro Group, the Spanish banking industry will receive up to ? 100 billion bailout funds. Of these, nearly 30% guarantee from Germany. In accordance with the agreement reached on the 10th by the euro group, provided funds to the Spanish banking sector was 30 billion euros, on the 20th formally approved, is expected to be paid before the end of the month.
Help the Bank of Spain, Germany has doubts. Many people in Germany in the European debt crisis "endless" play funded large growing dissatisfaction.
Relief funds from the euro zone temporary relief mechanism of the European financial stability tools, pumped into banks by the Government of Spain. After the entry into force of the permanent relief fund European stability mechanism, the money will be transferred from the stabilization mechanism. In accordance with the agreement reached by the end of June EU summit, after the establishment of a unified banking regulators, the European stability mechanism for funding do not undergo government injected directly into the bank. Including some members from within the German ruling coalition this worry, the Spanish bank bailout funds may not be the endorsement of the Government of Spain, Germany, impossible to recover once the bank defaults, the risk is too great.



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