Germany’s Constitutional Court has confirmed the eurozone’s bailout fund is legal.
At issue was the 700 billion euro fund known as the European Stability Mechanism, to which Germany is the biggest single contributor at 27 percent of the total.
The judges has been asked to rule on whether the ESM violated the rights of Germany’s lower house of parliament – the Bundestag – to decide on budgetary matters:
Andreas Vosskuhle, the President of the Federal Constitutional Court, said: “The result is clear. The constitutional complaint is partly inadmissable and apart from that without merit”
More than 35,000 people had complained to the court, included academics and lawmakers of all political stripes.
The judges rejected their argument that the ESM illegally transfered sovereignty from Berlin to Brussels, saying there were sufficient safeguards and limits to Germany’s contributions.
The court stressed that measures had been taken to ensure Germany’s liability to the ESM was limited to 190 billion euros, with any increase subject to approval or veto by the Bundestag.