German parliament approves Cyprus bailout

German Finance Minister Wolfgang Schauble, left, watches as Cyprus Finance Minister Harris Georgiades, center, talks with European Central Bank President Mario Draghi, right, before an informal meeting of the Economic and Financial Affairs Council (ECOFIN) in Dublin. File photo

The German parliament on Thursday overwhelmingly backed the €10 billion ($ 13.1 billion) international bailout for Cyprus.

Of the 602 members of the lower house of parliament, the Bundestag, voting on the measure, 487 approved the rescue plan, while 102 rejected it and 13 abstained.

Both the opposition Social Democrats (SPD) and the Greens joined Chancellor Angela Merkel’s centre-right coalition in supporting the rescue plan for Cyprus’ troubled banks.

Die Linke, a hard left party, voted against the aid programme, which includes €9 billion from Europe’s bailout fund and €1 billion from the International Monetary Fund.

Cyprus has to find an additional €13 billion from its own sources to help its troubled banks.

Defending the aid package, Finance Minister Wolfgang Schaeuble warned lawmakers that failure to help Cyprus could send shockwaves across the euro zone.

“If we do not help Cyprus, then the nation would inevitably face bankruptcy,” Mr. Schaeuble said.

The Bundestag vote was being held just five months before Germans are due to go to the polls in a general election. It follows a chaotic round of negotiations between euro zone finance ministers and Nicosia.

“We are not voting in favour of your crisis management of the last few weeks,” SPD leader Frank-Walter Steinmeier told the government in his speech to parliament.

The rescue package for Cyprus also has to be considered by other euro zone parliaments, including in Finland and the Netherlands.