German court may delay new Europe bailout fund

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German court may delay new Europe bailout fund

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Germany’s government and opposition have reached a deal on growth that should mean the eurozone’s permanent bailout scheme gets parliamentary approval.

However the country’s top court has insisted on more time to check it complies with the constitution, potentially delaying the rescue fund’s start date.

The political breakthrough came after eight weeks of talks.

“Along with Chancellor Merkel, we just agreed on measures for growth and employment in Europe. We made it clear that we need sustainable financial resources for this, such as taxing financial markets,” said Sigmar Gabriel, chairman of the centre-left Social Democrats.

The agreement means the ruling coalition should have the backing it needs from the Social Democrats and the Greens to get Europe’s new budget treaty ratified by the German parliament next week.

“We are all interested in stabilising the euro and I believe we have achieved this, and we’re happy about it,” said the head of the Christian Democrats group in parliament, Volker Kauder.

The European bailout fund was meant to come into effect on July 1. That looks set to be put back because of ratification delays in several countries, including Germany.