Business World

Thursday 14 November 2019

Bailouts are legal – German court rules reporters

Germany’s top court today rejected a lawsuit aimed at blocking German’s participation in eurozone bailouts.

The constitutional court ruled by a "very tight" margin that Germany did not break the law when it agreed to fund a bailout for Greece – bailouts for Ireland and Portugal then followed.

But the court, based in Karlsruhe, decreed that the parliament must have a say in any decisions that lead to burdens for the German budget.

The complaint was taken to the Federal Constitutional Court by a politician and academics who argued that the Berlin government's bailout decisions violated treaties governing the euro and German law on democracy.

Confidence in the euro is low as Italy continues to argue over austerity, citizens demonstrate in Spain and questions remain over Greece's ability to pay its debts.

Chancellor Angela Merkel is today due to address the German lower house of parliament, the Bundestag.

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