German parliament expected to vote yes on Greek bailout today

After the Greek parliament voted in the early hours of Thursday to pass the bailout reforms required in order to receive a third bailout, the German parliament will be voting today.

The vote would open talks on the 86 billion bailout that Greece requires over a three-year period. Greece’s creditors agreed on this deal at the weekend EU Summit demanding that Athens cut pensions, raise value-added tax, and set aside 50 billion euros of state assets to sell off.

German lawmakers from the Bundestag lower house of parliament are expected to give the government their clear backing for the bailout despite Finance Minister Wolfgang Schaeuble questioning whether it will succeed.

On Thursday, the European Central Bank increased emergency liquidity assistance (ELA) to keep Greek banks afloat, while European Union finance ministers also approved 7 billion euros in bridge loans to Greece, allowing it to make a bond payment to the ECB next Monday and clear its arrears with the IMF.

The news of the bridge loan and the increase in ELA helped give some support to the euro which edged higher against the dollar on Friday, moving off Thursday’s one-and-a-half month low 1.0854.

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