The Federal Constitutional Court in Karlsruhe today dismissed motions filed by groups including a conservative lawmaker and an opposition political party that sought to block the fund, known as the European Stability Mechanism, and a deficit-control treaty championed by Chancellor Angela Merkel. The court stipulated that a cap of about 190 billion euros be set on German liabilities before ESM ratification, unless parliament decides to back extra funds.
“The review has concluded that the laws that were challenged, with high probability, do not violate the constitution,” chief justice Andreas Vosskuhle told the court in comments broadcast live. “Hence the motions for a temporary injunction were to be rejected.” Yet “some uncertainties” about the limit on Germany’s contribution to the ESM and the scope of the German parliament’s say over the fund also flowed into the ruling, he said.
The legal challenge to the planned rescue fund highlights bailout fatigue in Europe’s largest economy and delayed efforts by Merkel and other euro-area policy makers to stem the region’s debt crisis. In the neighboring Netherlands, Prime Minister Mark Rutte, a Merkel ally, is seeking re-election today.
The euro rose 0.3 percent to $1.2890 at 10:24 a.m. in Berlin after the decision.
To contact the reporters on this story: Karin Matussek in Berlin at kmatussek@bloomberg.net
To contact the editor responsible for this story: Anthony Aarons at .
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