'The Euro's Future Will Decide Merkel's Future'

Spiegel
September 8, 2011

Germany's high court ruling on Wednesday to reject legal challenges to euro-zone bailouts gave Chancellor Angela Merkel a much-needed boost in her efforts to save the common currency. Commentators in the country argue that the chancellor has tied her political future to the fate of the euro.

It was an unusually passionate speech for German Chancellor Angela Merkel. Normally she is known for her hesitancy and tendency to hedge her bets, especially when it comes to saving the euro. But in a speech to the German parliament, the Bundestag, on Wednesday, she finally sounded like a committed European.

"The euro is much, much more than a currency," Merkel said. "The euro is the guarantee of a united Europe. If the euro fails, then Europe fails."

In her speech , which was part of a general debate on the budget, Merkel made a plea for "more Europe" and said that in order to make Europe strong and lasting, "treaty amendments can no longer be taboo in order to bind the EU closer together." She also reminded her country that a strong Europe was in Germany's interest. "In the long term, Germany cannot be successful if Europe isn't doing well too."

Her strong words came shortly after a tensely anticipated court ruling that could potentially have derailed future euro-zone bailouts. The German Federal Constitutional Court rejected several legal complaints that had been filed against Germany's participation in massive efforts to prop up the European common currency.

The court said that the billions in aid provided by Germany in loans and guarantees to highly indebted partner countries in the European Union had been constitutional. At the same time, the court stipulated that the Bundestag needed to be given a greater say in future bailout measures.

The judges ruled that aid package resolutions cannot be "automatic" and may not infringe on the decision-making rights of parliament. Aid packages have to be clearly defined, and members of parliament must be given the opportunity to review the aid and also stop it if needed, the ruling said.

In their ruling, the judges responded to three suits which had been filed in the past year against the bailout measures for Greece, which many Germans oppose.

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