European Commission "happy" with the approval of German bailout

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Best Growth Stock – The European Commission (EC) today welcomed the approval in the Bundestag (Parliament) of the expansion of German European Financial Stability Fund (EFSF).

“Of course we’re happy, we welcome this new FEEF ratification of the strengthening of “community spokesman said Economic and Monetary Affairs, Amadeu Altafaj, the daily briefing of the European Commission.

“Yesterday was Finland, before yesterday was Slovenia (who ratified FEEF reform), so that the process is moving forward,” he said.

The spokesman reiterated the EU executive confidence in the whole process of ratification of the new powers of EFSF by the 17 eurozone countries will be completed by mid October.

“That would be good news for the eurozone and Europe because we have enhanced instruments and enough ‘ammunition’ to manage the current crisis,” said Altafaj.

The German Bundestag today passed with 523 votes in favor, 85 against and 3 abstentions FEEF enlargement.

With the favorable vote by the German Bundestag are now eleven of the 17 countries that form the Eurogroup to ratify the agreement, after Spain, Belgium, France, Greece, Ireland, Italy, Luxembourg, Portugal, Slovenia and Finland.

Created in May 2010 and extended on 24 June, the fund is endowed temporary rescue of 780,000 million euros, although its effective capacity of loan to aid troubled countries amounted to 440,000 million.

On 21 July, the Heads of State and Government of the Eurogroup of 17 countries agreed to give greater flexibility to EFSF, to ensure the financial stability of the euro zone and build confidence in the markets.

This reform will allow the FEEF act preventively, lines of credit to preventive financially troubled countries to finance the recapitalization of banks and intervene in the secondary market.

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