German Court rules Euro bailouts legal

Germany's top court ruled  aid for Greece and rescue packages for other eurozone countries Berlin - AFP   Germany's top court ruled on Wednesday that aid for Greece and rescue packages for other eurozone countries was legal but said parliament must have greater say in any future bailout deal. In a landmark ruling eagerly anticipated by jittery financial markets, the Constitutional Court in Karlsruhe, western Germany, said all "large-scale" future aid packages must be approved by the parliament's budget committee.
"The federal government is required to seek the approval of the parliament's budgetary committee before handing over guarantees," chief justice Andreas Vosskuhle said, reading out the judgement.
In addition, the court ruled that parliament must have "sufficient influence" over the conditions attached to future rescue deals, likely limiting Chancellor Angela Merkel's room for manoeuvre if new crises blow up.
It may not approve deals that could lead to an unforeseeable burden on future parliaments, the court also ruled.
Moreover, the judges insisted that parliament may not approve any deal that leads to a pooling of national debt, apparently ruling out the idea of "eurobonds."
Economists fear that requiring parliamentary approval for future rescue deals may slow down the process of helping debt-wracked eurozone nations, where rapid decisions to stem swift market moves are often required.
German Chancellor Angela Merkel said that a pivotal court ruling Wednesday upholding rescue packages for stricken eurozone members confirmed Berlin's policies during the debt crisis.
"This is what the constitutional court confirmed without a doubt: responsibility for one's actions and solidarity -- solidarity and a transparent, open way of operating, of course with the co-determination of the parliament," she told deputies. "That is exactly the road we have taken."
The European Commission has welcomed the court's decision to uphold eurozone bailouts, saying the ruling has an important impact on efforts to overcome the debt crisis.
"The commission has taken note with satisfaction of the constitutional court ruling on legality of the financial assistance for Greece and other measures," said commission spokeswoman Pia Ahrenkilde Hansen.