Wednesday, September 7, 2011

German High Court Rejects Challenges to Euro Bailouts

So much for austerity in Europe.  Once again we have a wide open race to the bottom among all major fiat currencies.

Court Rejects Challenges to German Euro Bailouts By NICHOLAS KULISH and ALAN COWELL
Published: September 7, 2011

KARLSRUHE, Germany — In a widely followed ruling on Wednesday, Germany’s Constitutional Court upheld the legality of Berlin’s rescue packages for debt-stricken euro zone countries, but said any future bailouts must be approved by a parliamentary panel.
The decision was viewed by some analysts as a rare triumph for Chancellor Angela Merkel and seemed to place fewer restrictions than some had expected on her ability to react to the European debt crisis. At the same time, the high public standing of the court should lend broader legitimacy to government efforts to shore up the European currency.

But, other analysts said, the ruling could hamper Mrs. Merkel’s power to take quick measures.
The court’s president, Andreas Vosskuhle, said the ruling did not represent a “blank check for additional rescue packages.”
Speaking at a parliamentary budget debate in Berlin, Mrs. Merkel said the ruling had “absolutely confirmed” her government’s “transparent” handling of Europe’s debt crisis in close consultation with Parliament. “That is exactly the path we have followed,” she said.
Mrs. Merkel again underlined her country’s commitment to the single currency and European integration, saying the euro was “much more than a common currency.”
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