The German Bundestag has cleared the way for the temporary euro rescue fund, the EFSF, to provide financial assistance to Spain.
At an extraordinary sitting on Thursday, 19 July 2012, 473 of the 583 Members present voted in favour of a motion in which the Federal Ministry of Finance had asked the Bundestag to give its consent to the granting of an emergency measure from the EFSF worth up to €100 billion in order to recapitalise Spanish financial institutions. At the same time, the Bundestag gave its consent to the transfer of the rights and obligations regarding the financial assistance for Spain from the EFSF to the European Stability Mechanism (ESM) once the latter is in force. In this context, the ESM is to waive the preferred creditor status which had been provided for.
Under Section 3 (1), first sentence, of the Stabilisation Mechanism Act (Stabilisierungsmechanismusgesetz), in matters concerning the European Financial Stability Facility, the Federal Government may, through its representative, approve a proposal for a decision which affects the overall budgetary responsibility of the German Bundestag or abstain from voting on such a proposal only after the German Bundestag has taken an affirmative decision to that effect.
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