How Will Germany Vote?

In contrast, Michael Meister, a deputy leader of the Christian Democrats, told Reuters that he did not see such a haircut as being part of the deal. “If this were the case, then the Bundestag would have to decide … not to approve the next tranche of aid,” he said, indicating that the deal would be unacceptable if lawmakers determined that it would pave the way for further Greek losses.

SPD parliamentary leader Frank-Walter Steinmeier also disagreed with public sector haircuts, but for other reasons. He told Reuters that his party would take no action that could “lead to Greece becoming unable to make its payments in the short term or could force it to leave the euro zone.” Steinmeier accused Schaeuble of deceiving the German public. “Mr. Schaeuble brags to his own bloc that a debt haircut has been avoided but I tell you it has just been postponed to after the Bundestag elections,” he told German TV

Another problem facing German lawmakers, is the “underlying vein of resentment among German taxpayers at having to bail out euro zone countries less frugal than themselves.” The possibility of new haircuts brings even more concerns, as it would mean German taxpayers would be paying part of the bill.

The deal will be put to a vote in the Bundestag on Thursday or Friday.

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