German parliament approves EFSF expansion

German lawmakers today overwhelmingly approved expanding the powers of the euro zone bailout fund, which comes as a major step towards tackling the bloc's expanding sovereign debt crisis.

Though the measure has been largely expected to be passed by the lower house of parliament, it came only after a lively debate, which reflected the division among Germans over their role as Europe's economic power.

Of the 611 lawmakers present, 523 voted in favour and 85 against, with only three lawmakers abstaining, meaning that Germany would in the future, too, guarantee loans to the bailout fund, the so-called European Financial Stability Facility, or EFSF, of up to €211 billion, rather than €123 billion it funded so far.

The vote also served to highlight the split in Chancellor Angela Merkel's center-right coalition that was strained by threats of dissent from many members who were not inclined to propping up the euro zone's strugglers.

``Today, we will make an important contribution to our nation, to Europe and to the stability of the euro,'' Volker Kauder, the parliamentary leader of Merkel's bloc, said in opening remarks on the debate.

However, according to Frank Schaeffler, a member of Merkel's junior partner, the Free Democrats, the bailout measures had worsened Greece's economic situation.