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Germany backs bailouts - but with conditions

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Germany backs bailouts - but with conditions

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Germany’s Constitutional Court has rejected a series of lawsuits aimed at blocking the country’s participation in bailout packages for cash-strapped euro zone countries.

However, the court did say the German parliament should have a bigger say in future rescue proposals.

Judges at the country’s most senior court, sitting in Karlsruhe, said the German government must seek the approval of the parliamentary budget committee before granting any funds for aid.

The judges also insisted that parliament may not approve any deal that leads to a pooling of national debt, apparently ruling out the idea of “eurobonds”.

Economists fear that requiring parliamentary approval for future rescue deals may slow down the process of helping debt-wracked euro zone nations, like Greece, where rapid decisions are often needed.