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German court's ESM ruling

Tuesday, June 19, 2012 - 01:28

June 19 - Germany's top court agreed that Angela Merkel's government did not adequately consult parliament on the euro zone's permanent bailout scheme the ESM, though the ruling is not expected to delay its ratification by Germany. Hayley Platt reports

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Germany's top court isn't usually a key player in the debt crisis. But this hearing was closely watched by the euro zone and beyond. The constitutional court has been considering whether the Chancellor kept the German parliament fully informed When it comes to the European Stability Mechanism it seems she hasn't. The court ruled that Angela Merkel had violated the rights of the German parliament by failing to inform them sufficiently. The ESM was set up to help fund troubled countries. It's supposed to come into effect in July. But it's yet to be ratified by many member states' parliaments, including Germany's Bundestag. The ruling won't effect the ESM. But it is a reminder that Merkel needs to consider parliamentary colleagues like this Green party member when she discusses financial aid for the rest of the euro zone. (SOUNDBITE) (German) PARLIAMENTARY GENERAL MANAGER OF THE GREEN PARLIAMENTARY FRACTION VOLKER BECK, SAYING: "It is a good day for democracy, in Germany and in Europe. It's apparent that politics in Europe has become more parliamentarian and more democratic and therefore more transparent for the people." Germany is not expected to delay ratification although questions remain over other eurozone countries. That could be crucial for the likes of Spain and Italy who are both struggling to revive ailing economies. Hayley Platt, Reuters.

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German court's ESM ruling

Tuesday, June 19, 2012 - 01:28