German Constitutional Court Halts Special Euro Panel

[Roland99]

Source: Spiegel

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.

...

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.

'The Bundestag Cannot Be Replaced'

But the SPD members are contesting the law. "The Bundestag cannot be replaced by a nine-member committee on such important issues," Schulz told SPIEGEL ONLINE. Schulz argues that, at a minimum, the Bundestag's budget committee should be included in all decisions.

Read more: http://www.spiegel.de/international/germany/0,1518,794578,00.html

[ArcticFox]

1. Good.

[Roland99]

2. Europe rescue fund chief plays down China role

http://www.marketwatch.com/story/europe-rescue-fund-chief-plays-down-china-role-2011-10-28


This whole thing is sounding like a frat boy regretting the night before.

[lovuian]

5. Yes China now bought Greece on the cheap

and who is next Italy Spain ...before long China will own Europe

[bemildred]

3. Trying one of our Congress' favorite tricks, the special secret committee.

And rightly rejected by the court. Congress must be publicly accountable for all it does.

[dipsydoodle]

4. Very interesting

:thumbsup:

[Roland99]

6. Merkel: Must prevent others from seeking hair cuts... (yeah...good luck with that!!)

http://www.reuters.com/article/2011/10/28/us-eurozone-germany-merkel-idUSTRE79R3NL20111028

Chancellor Angela Merkel said on Friday it was important to prevent others from seeking debt reductions after European Union leaders struck a deal with private banks to accept a nominal 50 percent cut on their Greek government debt holdings.

"In Europe it must be prevented that others come seeking a haircut," she said.

Speaking in the Bavarian town of Deggendorf, Merkel also said that it was important to put restraints of speculative financial elements and show banks with better regulations.

Merkel also told a meeting of her conservative party that it will take many years to overcome the sovereign debt crisis, noting that it was affecting not only Europe but also the United States and Japan as well.