German Top Court to Back ESM With Conditions, FDP’s Fricke Says
Germany’s highest court will probably back the euro region’s future permanent bailout fund in today’s ruling while giving the country’s parliament more control, Free Democratic lawmaker Otto Fricke said.
The court “is going to say ‘yes, we’re going to let things through but we have to do some safeguards,’ especially to strengthen parliament once more, and especially to have a control, which is very important, on the budget rights of the parliament,” Fricke said in a Bloomberg Television interview.
The court may pave the way for a referendum in Germany on the transfer of power to the European level because changing the constitution “a little bit” would not be enough, said Fricke, budget spokesman for his party, Chancellor Angela Merkel’s coalition partner.
The future fund, the European Stability Mechanism, will offer loans to euro-member states and may buy their bonds to lower borrowing costs. If Germany can’t ratify the ESM treaty and join, the mechanism may not be created and other bailout measures might be thrown into doubt.
To contact the editor responsible for this story: James Hertling at email@example.com
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.