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German court set to back emergency European bail out fund

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German court set to back emergency European bail out fund

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German Finance Minister, Wolfgang Schaeuble, believes Germany’s Constitutional Court will give the green light to the establishment of a permanent European bail out fund and back strong budgetary regulations in Europe.

He said that government lawyers had reviewed the treaties on the table and found nothing that contravenes the German constitution.

The court is due to give its ruling on September 12.

European leaders will look at the ruling with interest as pressure mounts on Italy and Spain to decide whether to seek help to lower the crippling cost of borrowing.

Elsewhere, Berlin has rejected an EU plan to give the European Central Bank sweeping powers to monitor all euro zone banks, saying it should only focus on the major players.