Germany’s constitutional court on Wednesday dismissed a complaint against the European Stability Mechanism, clearing the way for the proposed fund to handle bailouts and work with the European Central Bank to buy the bonds of countries under fiscal strain, according to The New York Times.
The ruling awarded German Chancellor Angela Merkel a significant victory. The ESM is a key pillar of her strategy to master Europe’s debt crisis.
The decision dealt a blow to the group of citizens who tried to block the fund, arguing that the ESM would weaken the German Parliament’s right to control the spending of taxpayer money.
The court ruled in favor of Germany’s participation in the fund with some conditions, including a requirement for parliamentary approval of any increase in Germany’s contribution, which now sits at 190 billion euros.
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