September 7, 2011
Germany's highest court has ruled that relief for Greece and the euro bailout program is constitutional. As expected, the judges are demanding a greater say for parliament in future decisions on providing aid to beleaguered euro-zone member states.
In a tensely anticipated judgement, the German Federal Constitutional Court moved on Wednesday morning to reject 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 capital and guarantees to highly indebted partner countries in the European Union to shore up the euro had been constitutional. At the same time, the court stipulated that the German federal parliament, the Bundestag, needs to be given a greater say in future bailout measures.
Presiding Judge Andreas Vosskuhle said the verdict "should not be misinterpreted as a constitutional blank check for further rescue packages."
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. "The government is obligated in the cases of large expenditures to get the approval of the parliamentary budget committee," Vosskuhle said. The court said that check and balance was needed to ensure parliament retained its sovereignty over the budget, which it described as a "fundamental element" of democratic self-determination.
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