Econintersect: The German Constitutional Court’s Chief Justice Andreas Vosskuhle over-ruled the injunctions against German involvement in the eurozone’s new bailout fund. However, the ruling was conditional. According to the BBC:
“No rule of the treaty must be interpreted in a way which would result in higher payment obligations by Germany, without the consent of the German representative.”
Correspondents said that meant that any future increase in the size of the 500bn-euro (£400bn) fund, or of Germany’s contribution, could only be permitted with the express agreement of Germany’s parliament.
On cue, European Commission President Jose Manuel Barroso called for a full EU banking and budget union. More on the Eurocrisis follows.
Read More on Eurocrisis today:
European Commission President Jose Manuel Barroso called on Wednesday for a full EU banking and budget union, key steps in anchoring the bloc’s future as it fights the eurozone debt crisis.
Global oil prices rallied sharply on Wednesday, propelled by the weak dollar and soaring equities after Germany’s top court approved the eurozone’s bailout fund and fiscal pact.
“IT WILL be viable and will not post losses,” promised Luis de Guindos, Spain’s finance minister, on August 31st, as he unveiled plans for a “bad bank” to take over the dud property assets of Spain’s troubled lenders. Experience suggests that such pledges are not easily kept.America’s Resolution Trust Corporation (RTC), for instance, was set up in 1989 to clean up savings-and-loans institutions with $394 billion in assets…
Paris is in an uproar after France’s richest man reveals he may be headed for Belgium. CNN’s Jim Clancy has the story.
The GuardianQuick thought: Germany’s pussycat judgesDaily Mail (blog)SO that boneless wonder, Germany’s ‘all-powerful’ constitutional court, has rolled over and told Angela Merkel that her participation in the half-trillion euro European ‘Stability’ Mechanism does not breach the country’s constitution…
A rebound in UK trade in July is a relief after June’s data had shown the worst trade balance on record, and adds to hopes that the economy pulled out of its double-dip recession in the third quarter.
German exporters suffered their biggest drop in international orders in more than three years in August, according to a survey released on Monday. Retailers too are starting to feel the impact of the euro crisis. Europe’s largest economy, it seems, is losing its immunity to Europe’s debt problems.
Econintersect: C. J. Polychroniou, a research associate and policy fellow at the Levy Economics Institute of Bard College, New York, has written a policy note with a grim opinion on the effects of the austerity regime associated with the European Union (EU), the European Central Bank (ECB) and International Monetary Fund (IMF) orchestrated bailout of Greece…
STRASBOURG, France (Reuters) – Europe moved a step closer to a banking union on Wednesday with a plan for the European Central Bank to supervise all euro zone banks, a cornerstone of closer fiscal integration designed to end years of financial turmoil in the region.
The new fiscal treaty for most EU countries, held up awaiting a ruling on its legality by Germany’s Constitutional Court on Wednesday, aims to reinforce budgetary discipline in the wake of the debt crisis.
Professor Niall Ferguson discusses the state of the crisis in Europe and the role of the European Central Bank.
Even as the European Commission puts the final touches on a regulatory plan for banks, some countries are seeking to modify or delay the proposed system.
Consumer goods giant Unilever is now offering smaller packages to keep pace with the thinner wallets of its European customers. The company says the strategy comes from the developing economies in Asia and is vital now that “poverty is returning to Europe,” as one manager says.
The latest detailed sector PMI data for the EU signalled falling output in 18 of the 22 sectors covered in August. Although still signalling an ongoing widespread downturn in business activity, August represents an improvement on the 20 sectors that saw falling output in July.
Germany’s supreme court has rejected petitions to block ratification of Europe’s $640-billion rescue fund, giving the go-ahead for a key element of European leaders’ strategy for combating the continent’s long-running debt crisis.
The European Stability Mechanism (ESM) is the future firewall for eurozone government rescue funding. Its entry into force has been held up awaiting a ruling on Wednesday by Germany’s Constitutional Court on challenges over its legality.
UK industry rebounded strongly in July, enjoying the strongest growth for 25 years. While a huge relief that the economy is on course to rise from its double recession, the economy faces a huge challenge for growth to be sustained in coming months as much of the improvement simply reflects a temporary rebound from weakness in June caused by additional holidays…
KARLSRUHE, Germany (Reuters) – Germany’s Constitutional Court gave a green light on Wednesday for the country to ratify the euro zone’s new bailout fund and budget pact, but insisted the German parliament have veto powers over any future increases in the size of the fund.