Merkel got the victory she wanted yesterday. The Constitutional Rights Court has given their approval to the bailouts implemented up until now, but the judges changed the role that legislative power will play for future recovery plans.
The decision concerns how parliament approves and manages the funds that are agreed on from this point forward. The funds cannot exceed the federal budget, and they will not be granted automatically nor conditioned on the reforms put in place in the countries that receive them.
The CRC judges want to avoid and endless confluence of money transfers. Which surely complicates the next steps that Merkel has to take in order to save the euro, especially when there are hints of resistance within the coalition of parties that support it. If only the market had collapsed more quickly?
