Saturday 16 November 2019

German court confirms legality of euro zone bailout scheme

German Chancellor Angela Merkel addresses the Bundestag, the lower house of parliament, at the Reichstag in Berlin. Reuters
German Chancellor Angela Merkel addresses the Bundestag, the lower house of parliament, at the Reichstag in Berlin. Reuters
The Reichstag building housing the German parliament Bundestag

Germany's Constitutional Court confirmed on Tuesday the legality of the euro zone's bailout fund, upholding a preliminary ruling from the height of the debt crisis in 2012 that gave an initial green light to the European Stability Mechanism (ESM).

The court in Karlsruhe reiterated that the €700bn fund did not violate the rights of the Bundestag to decide on budgetary matters as long as the lower house of parliament had sufficient oversight powers over the ESM.

"Despite the liabilities assumed, the budgetary autonomy of the German Bundestag is sufficiently safeguarded," said the court in a statement after its chief judge, Andreas Vosskuhle, read out the verdict.

Reuters

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