EU welcomes German court's backing of bailouts

7th September 2011, Comments 0 comments

The European Commission welcomed on Wednesday the German constitutional court's decision to uphold eurozone bailouts, saying the ruling has an important impact on efforts to overcome the debt crisis.

"The commission has taken note with satisfaction of the constitutional court ruling on legality of the financial assistance for Greece and other measures," said commission spokeswoman Pia Ahrenkilde Hansen.

"This ruling confirms the compatibility with the German constitution with measures taken so far in this context," she told a news briefing.

"It has an important bearing on the capacity of the Union and of its member states to act, to surmount the sovereign debt crisis affecting certain member states," the spokeswoman said.

Germany's top court ruled that aid for Greece and rescues for other eurozone countries is legal, but it also stressed that the German parliament must have greater say in any future bailouts.

"It is now up to the German government and parliament to take this ruling into account," Ahrenkilde Hansen said.

"We fully respect and have utmost confidence in Germany's democratic institutions and have no doubt whatsoever that they will be able to comply with this ruling, while indeed maintaining their capacity to act effectively and decisively."

In a landmark ruling anxiously anticipated on jittery financial markets, the Constitutional Court in Karlsruhe, western Germany, said all "large-scale" future aid packages must be approved by the parliament's budget committee.

The verdict comes weeks before the German parliament votes on extending the eurozone's rescue fund amid mounting scepticism from politicians and the public, with German Chancellor Angela Merkel facing a rebellion from within her own centre-right coalition.

© 2011 AFP

0 Comments To This Article