German court clears euro bailout deal

THE eurozone’s rescue fund used to bail out Ireland, Greece and Portugal was given the all clear by Germany’s constitutional court, but securing further loans could be more difficult.

The constitutionality of the fund and Germany’s role as its largest contributor was challenged by a group of politicians and academics, who criticised the court’s ruling as a failure to protect German taxpayers’ money.

But while the ruling permits the continuation of the EU’s rescue fund and prevents chaos in the eurozone, the judges made it clear that the German parliament, the Bundestag, was responsible for the spending of German taxpayers money and must have a full say in where it goes, and that this could even extend to how the recipient countries spend it.