(Reuters) – German Chancellor Angela Merkel’s cabinet approved new powers for
the euro zone’s bailout fund on Wednesday, but she faces an uphill battle to
convince party skeptics to back efforts to contain the crisis.

Concerned that Germany’s parliament has little control over the European
Financial Stability Facility (EFSF), some members of Merkel’s center-right
coalition are threatening to oppose boosting its powers when the Bundestag
(lower house) votes on September 29.

If enough conservatives rebel and Merkel is forced to rely on opposition
parties to pass the legislation, she could face pressure to dissolve parliament
and call early elections, although the chances of that seem slim.

“I’ve reached the point that I just can’t support this anymore — pushing off
enormous risks into the future,” said the most prominent dissident, Wolfgang
Bosbach, who is normally a party loyalist with impeccable conservative
credentials.

Bosbach told Reuters he did not relish the risk of a vote of confidence in
Merkel, but was no longer prepared to rubber-stamp aid for heavily indebted
countries such as Greece with measures that could
cost future generations dearly.