GERMAN GREEK BAILOUT LEGISLATION Law to create the enabling basis for the take-over of warrantees in coherence

to emergency measures necessary for the preservation of the stability of the monetary union’s solvency. (Law to preserve the stability of the monetary union) Paragraph 1 Warrantee enabling 1. The federal ministry of finance is enabled to take-over warrantees up to an amount of 8,4 billion euros in the first year as well as up to an amount of further (xx) billion euros in the following two years for credits to the Hellenic Republic for emergency measures that are necessary to preserve the financial stability of the monetary union’s solvency. 2. A warrantee is to count against the maximum amount of this enabling to the extend, in which the federation can be utilized. Interest rates and costs are not to be counted against this scope of enabling. 3. Before the take-over of this warrantees according to point 1, the budget committee of the German Bundestag has to be informed / briefed, unless due to compelling reasons an exception is imperative. The budget committee of the German Bundestag is furthermore to be informed quarterly on the taken-over warrantees and their proper usage.

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Paragraph 2 Entry into force Paragraph 1 taking effect at the day after proclamation. The law as aforesaid is hereby engrossed. It is to be proclaimed in the Federal Law Gazette. Berlin, the Rationale: After the declaration of the heads of the states of the member nations of the Euro monetary union region from March 25, 2010, the member nations of the monetary union region have agreed upon the conditions of the financial help that the Hellenic Republic will receive in case of need to secure the financial stability in the entire Euro-monetary union. With the declaration of the ministers of finance of the Euro-monetary union region from April 11, 2010, the member nations of the Euro monetary union region have agreed upon financial help through coordinated, bilateral credits that will be bundled to a help package in favour of the Hellenic Republic under the mandate of the European Commission together with financial aids by the International Monetary Fund. The credit programme of the Eurostates extend over a period of three years and will provide in the first year up to (30) billion euro to cover the financial requirements of the Hellenic Republic. Subsequent to the declaration of the ministers of finance of the Euro-monetary union region, Germany adopts with the law at hand the necessary measures on a national level in order to be able to give rapid aid to the Hellenic Republic. Germany’s attributable quota is determined according to the particular quota of the states of the Euro monetary region on the shares of the capital of the European central bank. Germany’s quota among the 15 Eurostates (without the Hellenic Republic) amounts to 27,92%.

It applies for this warrantee enabling the usual rule of abatement / allowance according to budget law. Before the first-time take-over of a warrantee according to this law and subsequent quarterly, the budget committee of the German Bundestag is to be informed.
Translation by Lars Schall