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Thursday 13 September 2012
Germany's constitutional court gives European Stability Mechanism green light
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Andreas Vosskuhle, head of the second senate of the German Constitutional Court, addresses the attendees during a hearing on a clutch of legal challenges against Germany's ratification of the European Union's Lisbon Treaty in Karlsruhe
Andreas Vosskuhle, head of the second senate of the German Constitutional Court, addresses the attendees during a hearing on a clutch of legal challenges against Germany's ratification of the European Union's Lisbon Treaty in Karlsruhe
Reuters/Alex Grimm/Files
By Brent Gregston

Eight judges in Germany have delivered a momentous decision with far-reaching implications for the euro's future. The German Constitutional Court has ruled that it is legal to ask German taxpayers to help pay for a permanent bailout fund called the European Stability Mechanism. With the ESM cleared, the European Central Bank is ready to intervene in the markets and reduce borrowing costs for Spain, Italy and other weaker eurozone member states. But is this a sustainable solution to the Euro crisis? RFI discusses the implications with economics researcher Pawel Swidlicki, of Open Europe.

 

Dossier: Eurozone in crisis

 

 

 

tags : Economic crisis - Economy - European Union - Eurozone - Germany
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