| Author (Person) | Peel, Quentin |
|---|---|
| Series Title | Financial Times |
| Series Details | 7.9.11 |
| Publication Date | 07/09/2011 |
| Content Type | News |
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In a judgment issued on the 7 September 2011 Germany’s powerful Federal Constitutional Court rejected a series of challenges to the eurozone financial rescue packages agreed in 2010 for Greece and other debt-strapped members of the European currency union. The judges in Karlsruhe decided that the measures did not infringe the budgetary authority of the Bundestag, the German parliament in Berlin. But they also ruled that in future the Budget Committee of the Bundestag must give its prior approval before any further German financial guarantees for loans to its 16 partners in the eurozone. After the judgment Angela Merkel, German Chancellor, declared that 'the euro will not fail'. The Chancellor welcomed the court’s judgment as 'absolutely confirming' her government’s policy of 'solidarity with individual responsibility'. Germany would continue to demand drastic debt reduction from its eurozone partners in exchange for providing them with financial guarantees, she said. She also said that 'Treaty change is no longer a taboo'. A cross-party consensus was seen to be emerging in Berlin that the only effective answer to the disarray in the eurozone, is 'more Europe', via treaty change. |
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| Subject Categories | Economic and Financial Affairs, Politics and International Relations |
| Countries / Regions | Germany |
