Fate of eurozone rests in the hands of German judges

[dkf]

They have the potential to throw the stock exchange into turmoil, trigger frenzy on bond markets and bring down the German government. So the eyes and ears of the eurozone will be on the eight red-robed judges of Germany's highest court this week when they deliver a long-awaited verdict over whether a financial rescue fund considered crucial to the future of the euro gets the green light.

The constitutional court is under international pressure to rule in favour of the European stability mechanism and fiscal pact. A dissenting ruling from the court, based in Karlsruhe, southwestern Germany, would probably cause havoc on money markets and cast doubt on the future of Europe's single currency.

"The German constitutional court cannot afford to be seen as not being independent, but it also cannot afford to be seen as the court that brought down the government," said Constanze Stelzenmüller, a senior transatlantic fellow at the German Marshall Fund in Berlin. "They're going to have to try to square the circle; in other words, not bring down the government at the same time as asserting their independence."

The ruling, due on Wednesday, is expected to give the go-ahead to the ESM, a permanent bailout mechanism, and the fiscal pact, but with caveats such as constraints on future decision-making or a ruling that Germany's basic law has to be rewritten if there is to be further EU integration.

http://m.guardian.co.uk/world/2012/sep/09/german-judges-to-rule-on-euro-fate?cat=world&type=article

[RB TexLa]

1. Probably a more important decision than our election.

[dkf]

3. I'll bet the WH has their eyes on this one...along with the world.

A lot of complacency that it will come out okay it seems to me. At least so far.

[Tierra_y_Libertad]

2. "There is no safety in the cosmos." - Alan Watts