Merkel delivered on her promise to ratify the agreement in July about the ECB. Its budget will be expanded to 440 billion euros. It will have more powers to lend to countries and banks in the EU. But Merkel’s margin on the vote wasn’t that great. 17 members of her own conservative coalition voted against her. She could afford only 19 before she would have to depend on the opposition.
But in order to get that many votes in her favor she had to agree to re-negotiate the bailout terms the next time around. More austerity measures will be imposed along with more Troika visits to Greece. Greece will rebel. Yesterday’s vote might soon become irrelevant.