German opposition sees possible ESM vote delay (by William L. Watts)
FRANKFURT (MarketWatch) -- Germany's opposition Social Democrats said a planned Friday vote by the lower house of parliament on the creation of the euro-zone's permanent European Stability Mechanism and the ratification of the European fiscal pact may be delayed after Chancellor Angela Merkel gave in to Spanish and Italian demands to allow the ESM to directly recapitalize ailing banks during a summit meeting in Brussels, news reports said. The government "must explain [its] 180-degree turn," said Social Democrat budget expert Carsten Schneider on Twitter Friday. Schneider said it was unclear if the Bundestag would be able to vote on the ESM later Friday, Reuters reported. Merkel is scheduled to address the Bundestag later in the day.