The German court has ruled that the European bailout fund is legal.
The injunction has been rejected.
The main condition, apparently, is that the German contribution to the fund (the ESM) has been capped is limited to what parliament approves. In other words, if German’s contribution is going to go over 190 billion EUR, the parliament has to approve it.
That doesn’t seem like a big deal.
Markets are all rallying strongly on the news.
Italy is up 1%.
Germany is up 0.9%.
Previous updates are below.
Court is in order, and the decision is being read.
There’s still nod ecision, but markets are getting a bit jittery as the decision is being red.
The euro has fallen, and markets which had been higher are now lower.
There is some talk that this is going to be a long announcement. Many minutes.
Just stay tuned. If you want to watch it LIVE, they’re showing it on Bloomberg TV.
Here it comes!
At 4 AM, the German constitutional court — AKA the Bundesverfassungsgericht — is going to rule on a suit brought to block the ESM, Europe’s permanent bailout fund.
The ESM has to come into force for the Eurozone to follow through on other bailout measures.
It’s expect to pass, but you can never be sure.
We’ll have ther ruling right here LIVE as soon as it comes out.
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