Europe: German court voting in favor of participation in the ESM

The German Constitutional Court has approved its participation in the European Stability Mechanism, ESM.

It happened with a number of caveats, among other things, to put an upper limit on Germany's economic participation. The limit is set to 190 billion euro. The Court said, however, that the German Parliament may decide to raise the limit on how much Germany may participate with.

We still dont know all the details behind the decision but the central fact is that the Supreme Court allows Germany to ratify the ESM treaty, which means that the ESM fund will soon be operational. The way was thus paved the ECB / EFSF / ESM bond purchases in the crisis-affected countries - if those countries request assistance and submit to a number of requirements. The ball is thus on European politicians court now.