The German parliament has voted by an overwhelming majority in favour of measures to bolster the €440bn ($597bn) eurozone rescue fund, and give it new powers to buy bonds and recapitalise weak banks, in a move that lifted financial markets and boosted the euro.
The decision was greeted in Brussels as removing a big potential roadblock to further action to deal with the debt crisis, although several more eurozone parliaments still need to sign off on the package.
“It gives us some breathing space,” said a senior German official.
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