Germany’s court says EU rescue fund is legal

Harriet Green
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Germany’s constitutional court has rejected challenges to the Eurozone’s bailout fund, confirming the legality of the €500bn European Stability Mechanism (ESM), and upholding the preliminary ruling made in 2012.

It’s said the rights of the country’s parliament to make decisions on its budget are not violated by ESM, provided the Bundestag can veto the measure and impose limits on the costs it means for German taxpayers.

Liabilities, the court reiterated, must be capped at €190bn, and any larger sum will need further parliamentary approval.

Various opponents to the fund have brought litigation against it, focusing on the German parliament’s role in approving ESM decisions.