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Merkel gets Spanish bank bailout through German parliament

The lower house of Germany's parliament resoundingly has approved Berlin's contribution to a euro zone-wide aid package for Spain's banking sector.

The Bundestag backed the bailout by 473 votes, with 97 votes against and 13 abstentions - far more than the simple majority of the 583 members present that Chancellor Angela Merkel needed.

But Mrs Merkel fell short of a symbolically-important "chancellor majority" after 22 lawmakers from her own coalition voted against and one abstained.

This was slightly fewer than the 26 coalition lawmakers who opposed the permanent bailout scheme and fiscal pact compact in parliament on June 29.

The outcome of the vote had been largely a foregone conclusion after the main opposition parties had signalled they would back the package.

Earlier today, Spain's five-year borrowing costs hit new euro-era highs at an auction.

The average yield on bonds rose to 6.46% compared to 6.07% at an auction last month.

The country raised €2.98 billion but at higher rates as it is struggling to convince investors it can control its finances.

France sold bonds of similar maturities at yields below 1%.