Germany’s highest court shot down an appeal to prevent the government from ratifying a bailout fund that many investors say is critical to salvaging the European economy. The court rejected opponents’ arguments that the government’s bailout violated the constitution.
The news sent stock prices across Europe to four-month highs, while borrowing rates of countries experiencing economic tumult, namely Spain and Italy, eased further, according to AP.
The high court ruling is considered to be a major victory for Chancellor Angela Merkel, who has spearheaded efforts to rescue the Euro zone from its debt crisis. Berlin has committed to underwriting 27 percent – nearly 190 billion euros – of the 700 million-euro bailout scheme.
The German high court insisted that Merkel’s government seek parliamentary approval for any further contributions to the European rescue fund.