Despite some advantages, he's greatly concerned about increasing potential liability beyond what's safe and sensible.
In June, Germany's Bundestag approved ESM. President Joachim Gauck is free to sign it. His signature is required.
ESM and EFSF will operate in parallel until mid-2013. At that time, ESM will be on its own. Germany must provide 27% of its funds. Critics warn amounts will end up much more than anticipated.
ESM will have 700 billion euros in capital. Only 500 billion maximum can be loaned. Troubled Spain and Italy need multiples that amount. Enough resources aren't available to provide it.
A push come to shove moment awaits. It's just a matter of time. It may arrive sooner than expected. Economic conditions are dire and worsening.
Brussels-based Bruegel think tank deputy director Guntram Wolff believes ESM will only provide short-term relief. He doesn't think it's enough. How can it be with member state resources inadequate to fund it.
ING economist Carsten Brzeski said today's ruling fell short. It doesn't resolve crisis conditions. It's more feel good than real good. What's next remains a big unknown. Clarity may arrive with a bang or thud.
Once again, time alone was bought, little else. Nothing fundamental changed. Perhaps fed up tax payers suffering austerity pain will have final say. If not them, expect economic reality to rain on today's parade. Severe problems remain unresolved.