German party to defend bailout veto

Berlin: Germany’s Free Democrats will defend parliament’s right to veto payments from a future eurozone bailout fund, a leader of the party said, reigniting a row that is exposing deep divisions within the country’s governing coalition.

Christian Lindner, deputy FDP leader, said in an interview yesterday that he would resist attempts by finance minister Wolfgang Schaeuble to bypass parliament over payments from the European Stability Mechanism.

Portugal’s impending bailout, due to be finalised next month, and expectations of a restructuring of Greece’s debt have hardened public opinion against further handouts in a country increasingly ill at ease with its traditional role as Europe’s paymaster general.