Germany to vote on Greek bailout in crucial test for deal

Berlin

Germany's parliament prepared to vote on a fresh Greek bailout today, a crucial test of support for the deal after ECB boosted emergency aid to the crisis-hit country and eurozone nations agreed to crucial short-term funding. 

Germany is one of several eurozone states that must give the green light to the 86 billion euro ($94 billion) rescue package agreed this week to save Greece from financial collapse, its third bailout in five years. 

On the eve of the Bundestag vote, German Chancellor Angela Merkel told conservative lawmakers -- some of whom are refusing to back more aid for crisis-hit Greece -- she was "absolutely convinced" the new reform package was the way forward. 

The measure is expected to pass with a clear majority in the Bundestag lower of house of parliament on Friday, even if Merkel is facing growing disaffection within her CDU/CSU parties over lending more money to the country.

The vote comes after European Central Bank chief Mario Draghi agreed to increase a vital cash lifeline to Greece's struggling banks that will allow them to open their doors for the first time in almost three weeks on Monday.

Athens shuttered banks and imposed capital controls at the end of last month limiting withdrawls to 60 euros a day, bringing the economy to a virtual standstill and forcing Greeks to queue for hours for cash.