German Coalition Says Parliament Vote Not Needed on IMF Loan

Leaders of Chancellor Angela Merkel’s ruling coalition said a parliamentary vote won’t be needed on Bundesbank loans to the International Monetary Fund to tackle the European debt crisis.

Michael Meister, a vice chairman of Merkel’s Christian Democratic-led caucus in parliament, said the lower house, or Bundestag, doesn’t need to vote on loans aimed at increasing the IMF’s lending capacity because it doesn’t affect Germany’s federal budget. Free Democratic floor leader Rainer Bruederle concurred, saying a Bundestag vote was not needed.

“We respect all decisions taken by the Bundesbank on its own within the established legal framework,” Meister said in an e-mailed statement today. Bruederle told reporters in Berlin that parliament must respect the Bundesbank’s independence.

Leaders at last week’s European Union summit extracted a contribution from euro central banks of 150 billion euros ($197 billion) toward the IMF’s general resources. Another 50 billion euros will come from non-euro EU states.

To contact the reporter on this story: Patrick Donahue in Berlin at pdonahue1@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.