Brussels, 18/03/2014 (Agence Europe) - On Tuesday 18 March, the German constitutional court in Karlsruhe recognised the legality of the eurozone's permanent bailout fund, the European stability mechanism (ESM).
The Karlsruhe court ruled that the fund, with its €500 billion fire power, does not violate the Bundestag's prerogatives over budgetary affairs because the lower chamber of the German parliament scrutinises the use of the ESM.
German Finance Minister Wolfgang Schäuble welcomed the court's ruling for validating the government's work to ensure the stability of the euro, as he explained in a press release.
In early February, for the first time in its history, the Karslruhe court took the EU to the European Court of Justice over the lawfulness of its OMT programme for the ECB's purchase of sovereign bonds (see EUROPE 11014). (MB)