German court may delay ruling on EU bailout fund
on 11/07/2012 10:14:01
A ruling on whether to grant an injunction against the European Stability Mechanism (ESM) and the Fiscal Treaty had been expected within three weeks, but now may not be taken until the autumn.
During yesterday's hearing, the court President Andreas Vosskuhle announced he would undertake a "thorough constitutional examination" of the complaints, which could last up to three months.
The court's decision comes despite enormous political pressure; the German finance minister Wolfgang Schauble, who was at the hearing, warned of the "massive uncertainty on the markets" and "significant economic distortions" of a delay.
On Monday, Ireland's High Court refused to block the Government from ratifying the Fiscal Treaty after a challenge by independent TD Thomas Pringle.
The ESM can come into force once countries representing 90% of its fund commitments have ratified. Germany, representing the greatest share, needs to be among those that have ratified.