German Constitutional Court Halts EFSF Approval, Issues Temporary Injunction

Discussion in 'Wall St. News' started by Tsing Tao, Oct 28, 2011.

  1. Tsing Tao

    Tsing Tao

    German Constitutional Court Halts EFSF Approval, Issues Temporary Injunction On Further Bailout Decisions - ASusilovic Nowhere to be Found as News is Not Positive

    The German constitutional court has already played a substantial role in the country's participation in the European bailout. Back in September when noting the first participation of the court in the European rescue machinery we noted that "giving the Bundestag’s Budget Committee the final say over the use of the bailout fund is welcome from a democratic point of view, but will add another element of uncertainty to the eurozone crisis. However, so far the Budget Committee has consistently taken the government line on the bailout, albeit reluctantly, and it remains to be seen whether it dares to exercise its new power." It appears the court has once again decided to step up only this time not in a favorable light, after, as Spiegel reports, that the court has "issued a temporary injunction banning the nine-person committee in the Bundestag from taking any decisions on the deployment by EFSF of German taxpayer money." In addition to this, the Court also put the whole German fast-track approval process in jeopardy after it expressed "doubts about the legality of a new panel of lawmakers set up by the German parliament to reach quick decisions on the release of funds from the euro bailout mechanism." This is hardly the ringing endorsement the EURocrats needed to hear from the only power in Europe with the funds to keep the EMU together.

    From Spiegel:

    Germany's highest court has issued a temporary injunction banning the work of a new panel convened by the country's parliament to quickly green-light decisions on disbursement of taxpayer funds through the euro bailout program. The decision could lead to further delays in German decision-making in efforts to rescue the beleaguered common currency.

    Germany's Federal Constitutional Court on Friday expressed doubts about the legality of a new panel of lawmakers set up by the German parliament to reach quick decisions on the release of funds from the euro bailout mechanism, the European Financial Stability Facility (EFSF). The court issued a temporary injunction banning the nine-person committee in the Bundestag from taking any decisions on the deployment by EFSF of German taxpayer money.

    The special committee was recently created in order to be able to provide a quick green light for EFSF aid in especially urgent situations in which it wouldn't be feasible to put the issue up for a vote before full parliament. The decision from the court, located in Karlsruhe, could also slow down Bundestag approval of the further application of German credit guarantees within the scope of the euro backstop fund.

    SPD members of parliament Peter Danckert and Swen Schulz submitted their complaint on Thursday, expressing their concern that the nine-member panel might violate their rights as members of the legislative chamber.

    Germany's own supercommittee:

    The committee had been scheduled to convene its very first meeting on Friday. In September, Germany's highest court ruled that the Bundestag must be given a greater say in euro bailout decisions given the degree to which the common currency rescue could impose on parliament's right to create Germany's budget. In response, the Bundestag on Wednesday moved to include provisions for parliamentary co-determination of positions taken by Germany on the euro bailout at European Union summits in Brussels. Under the multilevel process, depending on the importance, the urgency and confidentiality, decisions can either be approved by the entire 620-member Bundestag, by the 41-person budget committee or by the nine-member special panel.

    And we thought decisions made by our own central planning 10-person Fed supercommittee were bad: Germany just one upped our own all-knowing overlords with its very own 9-person star chamber, which without a shadow of a doubt, represents the entire German population with perfect accuracy.

    Logically, we next expect the 9 member special panel to be also made redundant by a 1 person uber-committee. That will occur at roughly the time the much anticipated Keynesian fireworks begin...,1518,794578,00.html
  2. It figures ... either somebody is waiting for their palm to be greased or somebody is throwing a wrench in the works. This type last miute blockading is too similar to American style politics.
    Can't wait to see how it actually plays out.


    Buying gold, diamonds and ivory
  3. TGregg


    Going long Rolaids futures. ;)
  4. C6H12O6


    Rolaids ?
    15 years ago Europe had Delors and Kohl, now we have Sarkozy and Merkel.
    Rolaids won't put this poor Europe and its euro out of their misery.
  5. I think they are getting back stopped by another source. The EUR/USD is over 1.40. The price of gold, oil, and other commodities dollar related have not shown this to be in correlation to the currncy rate upswing for the Euro. They will make this happen on the surface but we all no that the contagion is still present.

    Welcome to Planet Misery,


    Buying diamonds, gold and ivory
  6. :D

    I call him the EuroTroll.
  7. Well, it is a German court, not a pan-European court, so I can see how they might come to such a decision.
  8. Now things are starting to come to light how the EUR/USD rate has been upswinging.

    What they do not realized is that by taking Chinese investment money they will lose political autonomy. The Chinese have a funny way of turning policy to suit Bejing's needs. A long time ago there used to be a Roman embassy in Bejing. from what I have read the Romans f'ed over the Chinese Emporer and there was a break down in the Roman state. In 2011 the Romans relic states are now asking to be bailed out by Bejing ... how ironic. I don't think that China will have any more problems with a certain religious entity after the money gets handed over to take care of a debt issue for the whole continent of Europe. The "Fatherland" is still trying to hold it's own against the New World and if their people don't want to work and the policies don't change then it will be assimilated into the global industrial complex by default.

    Welcome to Planet Misery,


    BUY GOLD!!!
  9. dtan1e


    Germans are a proud race, no self respecting German be caught dead to work to support in addition to themselves an Italian + a Spanish + a Portuguese + a Greek + an Irish + ..., its like getting behind by a queue, given the deal for Greeks, Italians be thinking they want a haircut too and why worry because some German is going to be their work horse, and so on for rest in line
  10. C6H12O6


    Proud, but not too smart if they believe the british propaganda aimed to inflate their egos, making them believe that they are losing something bailing out PIIGS.
    I can give you 2 news: at this moment, italian and spanish people are borrowing @ 6%, recapitalizing the banks (german and french too) who buy their bonds.

    And on the opposite, germans are borrowing @ 2% on 10Y and are lending to irish and greeks @ 5% and more. And AFAIK that credit is privileged, meaning it won't be haricut in greek default.
    #10     Oct 29, 2011