German High Court Capitulates to Bankers
Capitulation ignored deep-seated unresolved structural problems.
by Stephen Lendman
As expected, the Court caved. On September 12, headlines reported it. The Financial Times said "German politicians declared the road clear for the creation of the eurozone's (500 billion euro) rescue fund after the country's constitutional court rejected a petition to block it."
At issue is does it matter? More on that below.
Two Eurozone rescue schemes exist. The European Financial Stability Facility (EFSF) is running out of funds. Germany's High Court approved the European Stability Mechanism (ESM).
Originally it was scheduled to take effect July 1. Germany's parliament was still debating it. Constitutional Court approval is required.
It could have linked passage to constitutional law change. Doing so would have required Germany's first post-war national referendum. It stopped short and approved what lacks legitimacy, and in the end won't work.