ESM challenges rejected by court

Germany’s top court has rejected lawsuits seeking to block the country’s participation in the European Stability Mechanism, a key part of the euro area’s response to the debt crisis.

The Federal Constitutional Court in Karlsruhe dismissed the challenges to the €500bn ESM with only minor caveats to ensure the country doesn’t lose its voting rights on the ESM’s governing board.

The ruling is part of a complex web of challenges from academics and politicians to Germany’s role in the response to the EU debt crisis.