The Bundestag has voted to approve the European Financial Stability Facility which will see Germany underwrite €211 billion – up from €123 billion – of a stabilization package of €440 billion euros. The fund itself will hold total capital of €780 billion in order to maintain its AAA credit rating.
523 votes in favour, 85 votes against and three abstentions, marked a decisive victory for the most important vote in the ratification of the plan, which must be approved by the 17 Eurozone states.
EFSF is a Luxembourg-registered company owned by Euro Area Member States. It is headed by Klaus Regling, former Director-General for economic and financial affairs at the European Commission.
The Review Group, known as the troika, consisting of the EU, the European Central Bank and the International Monetary Fund, will now return to their work on Greece to determine whether it will qualify for the next installment of its loan, due on 13th October 2011.