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Constitutional court ruling on German bailouts could threaten ESM


Germany

Constitutional court ruling on German bailouts could threaten ESM

Germany’s constitutional court will decide on Wednesday whether the country’s contribution to bailouts for debt-stricken European nations is legal. The ruling will be a response to eurosceptics who are challenging Germany’s role in givهng financial help to a beleaguered Greece and Germany’s input into the permanent eurozone bailout fund known as the European Stability Mechanism or ESM.

The court’s ruling will decide whether the government was right to bailout Greece in 2010. It will also focus on the more technical issue of whether parliament should have been consulted before later financial given to Ireland and Portugal.

Analysts say even if things go in favour of the government, it may still have to get approval for future loans from parliament. A ruling against the government could jeopardise plans for a permanent ESM.

Chancellor Angela Merkel’s expected to talk about the verdict during a general debate on Wednesday. Join euronews for live coverage of the debate from 8.40 GMT.

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