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BERLIN - Voters in Germany's most populous state dealt Chancellor Angela Merkel a painful setback Sunday, erasing her government's majority in the upper house of parliament and curbing its power after a stumbling start and criticism over the Greek debt crisis.

But on Monday, Merkel said her government will move swiftly to approve the new rescue package for the eurozone.

Merkel says her cabinet will pass a package of loan guarantees in a special meeting Tuesday and it will then go to parliament for "quick but thorough" consideration.