Wednesday, September 12, 2012

Court Allows Germany to Ratify Bailout Fund

Wall Street Journal
September 12, 2012

Germany's highest court Wednesday threw out attempts to delay the country's ratification of the European Stability Mechanism and the so-called "Fiscal Pact" but placed strict conditions on expanding it beyond its foreseen limits.

The ruling, which was broadly as expected, removes a major question mark over two crucial elements of the euro zone's plan to manage its debt crisis. It paves the way for the creation of a permanent bailout mechanism in the region that will be able to provide large-scale financial assistance to heavily indebted euro-zone economies.

The news was welcomed by European and German politicians. The head of the euro zone's college of finance ministers, Jean-Claude Juncker, who is also Prime Minister of Luxembourg, said that following the court's decision he will convene the first meeting of the ESM's board of governors on Oct. 8 in Luxembourg.

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Read the Press Release of the court

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