Germany approves EU bailout fund

29 September 2011 Last updated at 06:34 ET

A large majority in the German parliament has approved expanded powers for the EU’s main bailout fund.

The vote was seen as a test of Chancellor Angela Merkel’s authority, as some in her coalition vowed to oppose the bill.

Many Germans are against committing more money to prop up struggling eurozone members such as Greece.

There are protests in Athens where international inspectors are due for talks on further bailout funds.

The measure is expected to pass in Germany’s upper house of parliament, where it will be put to a vote on Friday.

All 17 countries that use the euro must ratify the commitment to boost the bailout guarantees to 440bn euros (£383bn).

So far, 10 have approved the measure.

As Europe’s largest economy, Germany’s commitment to the European Financial Stability Facility (EFSF) would rise from 123bn euros to 211bn.

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