Germany Approves Euro Bailout

Good news for the global economy! U.S. stocks rallied after German Chancellor Angela Merkel passed a huge test Thursday, with the German Parliament voting to expand the EU bailout fund. The Dow Jones industrial average rose 2 percent as investors turned more optimistic on world finances. (News that U.S. quarterly GDP rose 1.3 percent also gave investor confidence a boost.) The European Parliament had been expected to pass the bailout plan, as the opposition supported the measure, but some were concerned that Merkel would have to pass it over the objections of large portions of her own party. That turns out not to have been the case, as it passed by a huge majority, 523 to 85, with three abstaining. The bailout is expected to pass Germany’s upper house of Parliament on Friday but will still need to pass seven more euro-zone nations.