German lawmakers approve euro rescue package

BERLIN (AP) - German lawmakers have approved their country's share of the huge rescue package aimed at protecting debt-ridden eurozone nations from default.

The lower house of parliament voted 319-73 with 195 abstentions in favor of the plan. The upper house, which represents Germany's 16 states, was to vote later Friday.

The euro750 billion (nearly $1 trillion) package was drawn up two weeks ago.

Germany, Europe's biggest economy, is to contribute between euro123 billion and euro147.6 billion in loan guarantees. It comes hard on the heels of a separate package to rescue Greece - which was already unpopular with Germans.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

BERLIN (AP) - With the future of the euro in the balance, German lawmakers were expected Friday to approve the massive rescue deal to save the common currency and contain the debt crisis - a signal that the finance minister said was needed to reassure jittery markets.

Both houses of parliament were scheduled to vote on the euro750 billion (nearly $1 trillion) package drawn up two weeks ago and Chancellor Angela Merkel's center-right government currently holds a majority in each.

Germany, Europe's biggest economy, is to contribute between euro123 billion and euro147.6 billion in loan guarantees. It comes hard of the heels of a separate package to rescue Greece - which was already unpopular, given that Germans dislike the idea of paying for others' financial missteps.

"We have to put into effect what we have agreed, because markets will only trust when it is actually in effect," Finance Minister Wolfgang Schaeuble told lawmakers. "The reality is that the markets look more at Germany than at Cyprus or Malta ... so it is right, in order to win markets' confidence, that we decide so quickly."

Merkel had called for lawmakers' approval on Wednesday, declaring that "if the euro fails, then Europe fails."

"We are not doing this out of generosity toward others; we are doing this in our own best national interest," Schaeuble said. "And this national interest means remaining integrated into a Europe growing further together."

Nearly two-thirds of German exports go to other eurozone countries, and "if we didn't have the common currency, we would have much less economic potential, less prosperity and less social security," he added.

Germany has pushed hard for aid to debt-laden European countries to be coupled with requirements to bring down deficits.

"It is right to say: yes to solidarity with others - but combined with the necessary demand for solidity, so that there is not an unconditional aid action," said Michael Meister, a lawmaker with Merkel's Christian Democrats.

Two opposition parties planned to abstain and the third, the hard-left Left Party, to vote against.

Lawmakers rejected an attempt by some in the opposition to force a delay in the debate. The Greens argued that it wasn't necessary to vote on Friday and that parliament still needed to see more details of the deal.

The biggest opposition party, the Social Democrats, said it would abstain because it doesn't think separate undertakings given by Merkel to seek taxation of financial markets are specific enough.

A senior lawmaker with the party criticized Merkel for not moving fast enough to regulate markets which many blame for worsening both the current crisis and the banking crisis of 2008.

"It is noticeable that we move at different speeds depending on whether it's about saving banks or calming nervous financial markets, or whether it's about defending citizens against these financial markets by regulating," Thomas Oppermann said.