The German constitutional court ruled this morning that Germany can participate in the ESM, Europe’s main bailout fund.
There’s one condition, which is that Germany’s contribution to the fund must not exceed 190 billion EUR without further parliamentary approval.
That might make some people — will there be enough firepower in the fund? — but it actually doesn’t seem like a big deal.
Only condition seems that German liability capped at 190 though seems they could come back again with more if approved by both houses.
Since ESM is not ECB doesn’t limit Draghi.
The big picture is that the ESM is already kind of obsolete now that Draghi has gotten involved with his unlimited balance sheet. The condition that Germany’s parliament must approve any decision beyond 190 billion EUR oesn’t seem like a huge deal.
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