Brussels, 27/09/2012 (Agence Europe) - On Thursday 27 September, the eurozone nations issued a declaration paving the way for formal ratification of the European Stability Mechanism (ESM) by Germany, the final stage in the ratification process so that the ESM, a bailout fund with lending capacity of €500 billion, comes into force (see EUROPE 10690). The declaration endorses the criteria laid down by the German Constitutional Court in Karlsruhe earlier this month about the Bundestag's right of scrutiny in the event of increases in the ESM capital (see EUROPE 10687). The inter-governmental treaty establishing the ESM “limits all payment liabilities of the ESM Members under the Treaty in the sense that no provision of the Treaty may be interpreted as leading to payment obligations higher than the portion of the authorised capital stock corresponding to each ESM Member, without prior agreement of each Member's representative and due regard to national procedures. Article 32(5), Article 34 and Article 35(1) of the Treaty do not prevent providing comprehensive information to the national parliaments, as foreseen by national regulations.” The ESM board of managers will be holding its first meeting on Monday 8 October on the same day as a Eurogroup meeting in Luxembourg. (MB/transl.fl)