German high court clears European Stability Mechanism

Some conditions still apply, but the German Federal Constitutional Court rendered a decision that puts the euro zone one step closer to getting back on its feet. “The review has concluded that the laws that were challenged, with high probability, do not violate the constitution,” said Chief Justice Andreas Vosskuhle in announcing the decision.

Germany was one of the last countries left to ratify the treaty for the European Stability Mechanism, which will establish an international organization to provide financial assistance to euro zone members in financial difficulty. The case was brought to decide if joining the ESM handed over German Parliament’s power to decide how taxpayers’ money is spent.