Germany approves new eurozone bailout fund

In a judgement given on the 12 September 2012 Germany's Federal Constitution Court rejected efforts to block the European Stability Mechanism - the eurozone's €500-billion bailout fund - paving the way for the country's ratification of the fiscal compact, to the relief of the government in Germany and to many other European politicians and officials.

The Court rejected a lawsuit brought by opponents of the euro, and set only a few conditions for the ratification of the European Stability Mechanism and the fiscal pact. The main proviso is that the ESM cannot increase the scope of Germany's liability without the country's agreement. What will the ruling mean for Berlin and Europe?

Deutsche Welle, 12.9.12: EU politicians applaud German court ruling http://www.dw.de/dw/article/0,,16234047,00.html

Spiegel Online International, 12.9.12: A Setback for Germany's Euroskeptics http://www.spiegel.de/international/europe/constitutional-court-ruling-a-setback-for-germany-s-euroskeptics-a-855413.html

EurActiv, 12.9.12: German court clears way for ESM rescue fund http://www.euractiv.com/euro-finance/german-constitutional-court-give-news-514753

EUObserver, 12.9.12: Sighs of relief as German court approves bailout fund http://euobserver.com/institutional/117520

BBC News, 12.9.12: German court backs eurozone's ESM bailout fund http://www.bbc.co.uk/news/world-europe-19567867

ESO: Background information: The German Constitutional Court and the ESM: What’s at stake? http://www.europeansources.info/record/blog-the-german-constitutional-court-and-the-esm-whats-at-stake/

France24, 12.9.12: Top German court clears euro rescue fund http://www.france24.com/en/20120912-top-german-court-clears-euro-rescue-fund-eurozone-debt-stocks-investors

Süddeutsche Zeitung / Frankfurter Rundschau / Die Tageszeitung, 12.9.12: Karlsruhe plays it safe (via PressEurop) http://www.presseurop.eu/en/content/press-review/2680641-karlsruhe-plays-it-safe

Spiegel Online International, 13.9.12: Euro Ruling Not as Simple as It Seems http://www.spiegel.de/international/germany/triumph-in-defeat-ruling-on-esm-in-germany-not-as-simple-as-it-seems-a-855692.html

Spiegel Online International, 17.9.12: German Parties Offer Rival Interpretations of Euro Ruling http://www.spiegel.de/international/germany/unlimited-liability-legal-hurdles-ahead-in-effort-to-save-euro-a-856226.html

Spiegel Online International, 20.9.12: Euro Zone Changing ESM to Satisfy German Court http://www.spiegel.de/international/europe/esm-agreement-euro-zone-states-seek-to-assuage-german-court-a-857027.html

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