On Wednesday, 12^th September 2012, Germany’s constitutional court presented its all-important decision about the permanent bailout fund called European Stability Mechanism, a successor of European Financial Stability Facility. Eight judges, chaired by Andreas Vosskuhle, decided that ESM does not collide with German constitution that enables ESM to start operating as soon as German president Joachim Gauck signs it.

The judges refused the objections and fears of critics of the ESM, who claimed that ESM practically commits Germany to become a donor of unlimited financial aid to weak economies of the euro area. According to their ruling, the total amount of €500 bn can only be modified if German representatives agree with it. Markets reacted very positively and Ms Merkel called it ‘’a good day for Germany and a good day for Europe’’.

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