☰

M. Continuo

German court confirms legality of euro zone bailout scheme


    KARLSRUHE, Germany (Reuters) - Germany's Constitutional Court confirmed on Tuesday the legality of the euro zone's bailout fund, upholding a preliminary ruling from the height of the debt crisis in 2012 that gave an initial green light to the European Stability Mechanism (ESM).

    The court in Karlsruhe reiterated that the 700 billion euro (£586.16 billion) fund did not violate the rights of the Bundestag to decide on budgetary matters as long as the lower house of parliament had sufficient oversight powers over the ESM.

    "Despite the liabilities assumed, the budgetary autonomy of the German Bundestag is sufficiently safeguarded," said the court in a statement after its chief judge, Andreas Vosskuhle, read out the verdict.

    (Reporting by Stephen Brown, Madeline Chambers and Michelle Martin; Editing by Noah Barkin)