Germany's €480 billion bank bailout flew through parliament in a historic fast-track vote today to restore shattered confidence in the stricken financial sector.
The rescue package, the biggest ever in German post-war history, sailed through the lower house of parliament, or Bundestag, where 476 parliamentarians voted in favour, 99 against and one abstained.
It was later passed unanimously in the upper house, or Bundesrat, comprising provincial legislators from Germany's 16 states.
There had been grumbling from some regional state premiers over the cost of the bailout, since they would have to shoulder 35% of the burden.
The plan, unveiled at the beginning of the week, includes up to €80 billion in fresh capital for banks and €400 billion in guarantees in order to jumpstart stalled lending between banks. It can now come into effect on Monday.
Germany's Economy Minister Michael Glos said it was crucial not just for the banks, but primarily for 'the good of citizens and the economy.'
So far, no bank has signalled its intention to apply for aid under the rescue package. A financial source said that Germany's biggest bank, Deutsche Bank, would not seek state aid. 'Deutsche Bank's capital structure is very strong, as a result there is no need to seek state aid,' the source said.
German Chancellor Angela Merkel insisted the bail-out would help avert further harm to Europe's biggest economy, which is expected to grind to a near halt next year.
