German EFSF panel temporarily pending on top court ruling
0 Comment(s)
Print
E-mail
Xinhua, October 28, 2011
Germany's supreme court Friday ruled that only the entire German parliament are fully entitled to deal with the European rescue fund, apparantly blocked the rubber-stamp decision on the EFSF by a nine-member special committee.
The verdict was meted out by the Federal Constitutional Court in the southwestern city of Karlsruhe on an urgent request by two parliamentary deputies early this week, saying the matter concerning far-reaching political and budgetary decisions binding under international laws, so the entire parliament must be consulted.
On Wednesday, the lower house of German Parliament, the Bundestag, set up a panel consisting of only nine members of the Bundestag with representation of members of all the parties in parliament.
The committee would have been authorized to fully decide on the use of the 440-billion-euro (some 624 billion U.S. dollars) EFSF bailout fund, including action on purchase of bonds or recapitalizing the cash-strapped commercial banks.
It was billed as aiming to expediting German even quicker reaction to fulfill its role as the eurozone's paymaster during current escalating eurozone debts crisis.
Two SPD members then complained in Karlsruhe against the shift of decision to a special committee, accusing it having violated their participation rights.
The court based its preliminary decision on the fact that the special committee could make decisions that affect the overall fiscal responsibility of the Bundestag.
These "possible violation of law" would make a decision on the merits cannot be reversed, since Germany had been received after approval of the FTA "binding international obligations", as the operation of the panel might possibly undermine parliament's sovereignty on budgetary issues, a "possible violation of the law" that could not be reversed if breached because Germany would have made "commitments that are binding under international law."
The federal government remains the view of the constitutional judges to act even without the special committee, because the government could at any time can decide the plenary.
In early September, the Court entitled the German parliament with more right in carrying out the euro-saving program.
On worries that Germany might get retarded in the much needed quick reaction to the eurozone crisis, a rapid-response organ has been called for by the head of the EFSF to wade through the market turmoil as the market situation plunging into urgency.
