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German High Court Approves Bailout Fund
Germany's
Federal Constitutional Court today approved the country's ratification
of the permanent euro rescue fund, paving the way for the
seventeen-nation eurozone to establish the European Stability Mechanism (DerSpiegel)
and implement an EU fiscal compact.
NETHERLANDS: Dutch voters are going to the polls today (BBC)
to select a new prime minister amid concerns over the ongoing eurozone
sovereign debt crisis. It is expected to be a close race between the
center-right Liberal party's Mark Rutte, the current prime minister, and
the center-left Labor party's Diederik Samsom.
The eurozone, once seen as a crowning achievement in the decades-long path of European integration
,
is buffeted by a sovereign debt crisis of nations whose membership in
the currency union has been poorly policed, explains this CFR
Backgrounder.German court allows eurozone rescue fund ratification
Germany’s constitutional court has rejected a petition that would have stymied the creation of the eurozone’s €500bn resuce fund.
The decision by the eight justices of the court in Karlsruhe removes the threat that Germany would be prevented from signing the treaty setting up the European Stability Mechanism, designed to stave off sovereign defaults.
The court ruled that the ceiling of €190bn in German financial guarantees imposed when parliament approved the rescue fund could only be increased with the assent of lawmakers. There must be no unlimited liability for Germany, the ESM’s biggest backer, the justices decided.
http://link.ft.com/r/UXDMSS/
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