Article Image
News Link • Economy - International

8 German Judges Hold The Fate Of The Euro In Their Hands

•, Reuters
 A negative ruling, considered improbable by legal experts, would cast the 17-nation European single currency area into turmoil, spurring panic on bond markets by raising doubt over any more rescues of debt-laden southern states.

But if, as expected, the court gives a green light on Sept. 12 to the euro zone's permanent bailout mechanism and a pact on stricter budget discipline, it may add conditions that constrain Berlin's power to pursue further European integration.

The court based in Karlsruhe in western Germany, one of the country's most trusted institutions, is unlikely to let Chancellor Angela Merkel completely off the hook.

Few experts expect the eight red-robed judges to reject the European Stability Mechanism (ESM)and fiscal pact outright, not least because of the devastating impact on financial markets.

"If they were to surprise us by striking down Germany's participation, I would think it'd be an utter bloodbath in markets," UniCredit global chief economist Erik Nielsen said.

Join us on our Social Networks:


Share this page with your friends on your favorite social network: