Euro-area voting on EFSF: 11 of the 17 member states have voted to approve the expansion

The 17 member states of the Euro-area are voting on the possible expansion of the European Financial Stability Facility (EFSF). In order to expand the facility (to the full €440bn), it must  be approved by the national parliaments of all 17 member states. This expansion is seen as key to containing the fiscal crisis in the region. Unfortunately, some members will only vote next month (see list below).

Once the expansion and powers of the EFSF is agreed, the idea is to leverage the facility significantly. At the IMF meetings I attended last week in Washington the US suggested that this leverage could be done by converting the EFSF to operate like a bank (I think the process of leverage still has to be discussed more fully). Ultimately, the idea is to convert the EFSF to the ESM (European Stability Mechanism), which would then be a permanent bail-out fund for the EU. A lot still has to be decided.

Current voting status:
 

Given that Germany and France have approved the expansion, I would imagine that the expansion of the EFSF goes ahead. A very positive step in the right direction.