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Court blocks euro rescue panel
Germany's highest court has ruled against plans to give emergency fast-track powers to a special parliamentary panel, which would have allowed it to make snap decisions regarding the eurozone rescue fund.
Euro: no snap German decisions
However, the panel has been given the power to approve emergency bond issues on the secondary market, giving investors some optimism in a time of crisis.
Market uncertainties
The Financial Times reports that the decision could increase uncertainties in the financial market over how quickly the eurozone could respond and rescue those in need.
The ruling asserted that the panel would need more than the proposed nine members if it wants to be deemed constitutional. But the court accepted that secrecy and speed in making decisions about bond purchases outweighed the constitutional need for broader participation, although it still suggested greater representation would be appropriate.
Irish referendum
The news comes after the eurozone was further unsettled by Irish Prime Minister Enda Kenny’s announcement of an Irish referendum on the euro fiscal pact. This could upset Germany’s plans for a new EU architecture, as it is possible that only 16 countries will accept that final pact.
German website Spiegel Online described the outcome as a good day for democracy, but a bad one for German Chancellor Angela Merkel.
Market uncertainties
The Financial Times reports that the decision could increase uncertainties in the financial market over how quickly the eurozone could respond and rescue those in need.
The ruling asserted that the panel would need more than the proposed nine members if it wants to be deemed constitutional. But the court accepted that secrecy and speed in making decisions about bond purchases outweighed the constitutional need for broader participation, although it still suggested greater representation would be appropriate.
Irish referendum
The news comes after the eurozone was further unsettled by Irish Prime Minister Enda Kenny’s announcement of an Irish referendum on the euro fiscal pact. This could upset Germany’s plans for a new EU architecture, as it is possible that only 16 countries will accept that final pact.
German website Spiegel Online described the outcome as a good day for democracy, but a bad one for German Chancellor Angela Merkel.
