21st Mar 2018

Bundestag likely to approve Cyprus bailout

  • The German Bundestag has so far approved all bailouts negotiated by the Merkel government (Photo: Valentina Pop)

The German parliament is likely to approve Cyprus' bailout programme despite concerns over a widening funding gap and growth projections which may prove too optimistic.

German finance minister Wolfgang Schaeuble on Tuesday (16 April) held a two-hour session with key MPs in the budget and EU affairs committees, laying out what the German government managed to achieve when negotiating the €10 billion bailout for Cyprus.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

A vote in the plenum of the Bundestag is scheduled for Thursday.

Green MP Tobias Lindner who took part in the Schaeuble debate told this website "everything indicates there will be a large majority on Thursday" approving the bailout.

The decision is likely despite "questioning at length" how a €6 billion funding gap is to be filled given Cyprus' rapidly shrinking economy and how the ballooning debt is to be kept at "sustainable" levels, Lindner added.

Meanwhile, the issue of alleged money laundering by Cypriot banks - the number one topic in Germany ahead of the eurozone deal - seems to have been kicked into the long grass.

Schaeuble told MPs that Berlin managed to convince Nicosia in accepting "two external audits, which they didn't want," said Lindner.

But since the report on how banks implement anti-money laundering rules is not expected until next month, the German opposition is no longer making this a prerequisite for approving the bailout now.

"Like any other bailout, each tranche will be disbursed only when the troika finds that the government sticks to the conditions of the programme. So the reports on money laundering will be linked to future tranches," the Green MP said.

Another MP who took part in the exchange, Johannes Kahrs from the Social-Democrats, told EUobserver that his group will vote in favour, despite there being "no question about how badly the thing was negotiated."

"It is more a question of European solidarity," Kahrs noted.

His party had previously threatened to veto the bailout deal if there were too few reassurances about money laundering and about Russian oligarchs who bank in Cyprus paying their share of the cost.

"We got the participation of depositors above €100,000. But as opposition, we cannot expect to get everything through," Kahrs said.

Schaeuble himself seemed to be confident of the Bundestag vote already on Monday, when he was quoted by the Neue Osnabruecker Zeitung as saying he is "counting on a broad majority, also with a broad support from the opposition."

The German parliament has been often singled out as one of the most powerful in Europe, as it has to approve every euro-bailout.

So far, it has not made use of its veto on any of the rescue packages or on the creation of the eurozone bailout fund, mostly because Angela Merkel's government is negotiating deals fine-tuned for the approval of the Bundestag, rather than risking a parliament showdown.

Bundestag approves Cyprus bailout

German MPs have approved by a large majority a €10bn EU-IMF bailout for Cyprus, but MPs in Nicosia may still derail the deal.

VW dismisses complaints on Dieselgate fix

'I think customers who want to get information (...) are able to receive information if they want," VW management board member Hiltrud Werner told EUobserver. Consumer groups disagree.

News in Brief

  1. EU to have 'immediate' trade talks with Trump
  2. Separatist activist renounces Catalonia leadership candidacy
  3. EU puts conditions on Bayer-Monsanto merger
  4. Hard Brexit would hit poorer Irish households hardest
  5. Finland hosts secretive North Korean talks
  6. EU to unveil 3% tax on digital giants
  7. German elected S&D leader in European Parliament
  8. Germany: nearly €350m child benefit goes abroad

Stakeholders' Highlights

  1. EUobserverStart a Career in EU Media. Apply Now to Become Our Next Sales Associate
  2. EUobserverHiring - Finance Officer With Accounting Degree or Experience - Apply Now!
  3. ECR GroupAn Opportunity to Help Shape a Better Future for Europe
  4. Counter BalanceControversial Turkish Azerbaijani Gas Pipeline Gets Major EU Loan
  5. World VisionSyria’s Children ‘At Risk of Never Fully Recovering', New Study Finds
  6. Macedonian Human Rights MovementMeets with US Congress Member to Denounce Anti-Macedonian Name Negotiations
  7. Martens CentreEuropean Defence Union: Time to Aim High?
  8. UNESDAWatch UNESDA’s President Toast Its 60th Anniversary Year
  9. AJC Transatlantic InstituteAJC Condemns MEP Ana Gomes’s Anti-Semitic Remark, Calls for Disciplinary Action
  10. EPSUEU Commissioners Deny 9.8 Million Workers Legal Minimum Standards on Information Rights
  11. ACCAAppropriate Risk Management is Crucial for Effective Strategic Leadership
  12. EPSUWill the Circular Economy be an Economy With no Workers?

Latest News

  1. EU leaders set for 'stormy debate' on digital tax at summit
  2. EU praises Turkey on migrant deal despite Greek misery
  3. Judicial reforms 'restore balance', Poland tells EU
  4. Whistleblower fears for life as US arrests Malta bank chair
  5. Behind the scenes at Monday's EU talks on Russia
  6. US yet to push on Nord Stream 2 sanctions
  7. EU mulls coercion to get refugee kids' fingerprints
  8. Five east European states prevent new CAP consensus