German top court to rule on eurozone bailout fund

Germany’s constitutional court will proceed with a ruling on the legality of the eurozone’s new permanent bailout fund and budget rules, rejecting a last minute legal challenge.

It means a final decision on the so called European Stability Mechanism and Fiscal Compact will be made this Wednesday.

Speaking to euronews Brussels based expert Janis Emmanoulidis from the European Policy Centre said:

‘‘Regarding Europe, it might be that the Court will say what is possible and what should be done, and how the ESM fits within the framework of the constitution. The court will also say which parts of bailouts are legal and which are not.’‘

When asked about German domestic opposition, he added: ‘‘I would say the biggest problem is that there hasn’t been any real explanation on what the ESM is. There hasn’t been any real information on why such a mechanism is needed, if there are any risks, whether these have been considered properly, and if there is an alternative or not.’‘

The legal challenge by a member of the German parliament had argued Germany should not ratify the ESM until the European Central Bank rowed back on its new bond-buying plan announced by its chief Mario Draghi last week.

Copyright © 2013 euronews