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Some good comments on the German court decision from Sony Kapoor of the thinktank RE-Define:”The German Constitutional Court has reached the best decision possible on the ESM. It contains no nasty surprises but merely strengthens the role of the Bundestag.”
“The decision has no implications for the ECB or its possible interventions in the bond market, nor does it preclude the possibility of the ESM being granted a banking licence at some future date.”
“However, those cheering the decision must remember that this was important primarily for its nuisance value in terms of what could go wrong. The ESM has long being considered a done deal and this decision merely brings us back to the situation as it prevailed before the German Constitutional Court decided to consider the complaint against the ESM.”
“The ESM remains inadequate in size and has a cumbersome decision-making process that gives Germany, France & Italy a de-facto veto on some critical decisions.”
Meanwhile, there are headlines that European Finance Minister Jean-Claude Juncker says the European rescue fund can start on October 8.
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