German Parliament Seen Clearly Backing Talks on Greece Aid

Germany to vote on Greek bailout in crucial test for deal.

German lawmakers are expected to give Berlin a clear green light on Friday to start negotiations on a third bailout programme for Greece, despite Finance Minister Wolfgang Schaeuble questioning whether it will succeed.

On the eve of the vote, Schaeuble provoked ructions in the ruling coalition by repeating his view that the better option for Greece may still be to temporarily leave the euro zone - a scenario he had floated during weekend negotiations.

Schaeuble’s repetition of the suggestion prompted accusations from the Social Democrats (SPD) – junior partners in Chancellor Angela Merkel’s ruling coalition - that he was undermining the Greek deal she had reached at the weekend.

Some conservatives rushed to Schaeuble’s defence.

“Wolfgang Schaeuble is not undermining the chancellor,” said Mark Hauptmann, a conservative lawmaker who voted against further aid for Greece in a parliament session in February and who said he would vote ‘No’ on Friday.

“He is keeping the option of a Grexit on the table - and that’s absolutely the right thing to do.”

Third Bailout Negotiations

Despite Merkel facing the prospect of a revolt in the ranks of her own conservatives, the Bundestag lower house of parliament is expected to clearly back negotiations on a third bailout.

A “test” ballot of conservative lawmakers on Thursday showed a clear majority would vote in favour of the negotiations in Friday’s parliamentary vote, which will follow a debate scheduled to start at 10 am (0800 GMT).

The overwhelming majority of SPD lawmakers also indicated their support, a similar party test vote showed. Merkel needs a Bundestag majority to mandate talks on a new loan.

Under domestic pressure from lawmakers who have lost trust in Athens, she agreed a tough deal at the weekend that demands that Greece cut pensions, raise value added tax, and set aside 50 billion euros ($54.50 billion) of assets to sell off.