German Constitutional Court gives green light to the ESM

The government will be required to involve the Parliament in a more significant way, yet “the budgetary autonomy of the Bundestag is sufficiently safeguarded”

The judges of the Top German Constitutional Court in Karlsruhe, after a preliminary ruling in 2012, rejected the challenges against the European Stability Mechanism (ESM).

In line with their position in relation to national sovereignty yet, the Court asked the German Government to involve the parliament in the decision-making process about the permanent bailout mechanism. Rejecting the challenges made by a dozen of German citizens, judges have also confirmed that said the euro zone’s €700 billion rescue fund, aimed at saving the common currency from speculative attacks, doe s not breach German parliamentary rights on economic matters. “Despite the liabilities assumed,” reads the ruling, “the budgetary autonomy of the German Bundestag is sufficiently safeguarded.”

Ezio Baldari