In what's being hailed as a big win for German Chancellor Angela Merkel, the Federal Constitutional Court agreed to allow the country to participate in forming a bailout fund for countries in the eurozone.
From the New York Times:
"With the ruling, the 17 countries of the euro zone will be able to move ahead with the establishment of the European Stability Mechanism, something like a continental version of the International Monetary Fund. The mechanism will handle bailouts and work in tandem with the European Central Bank to buy the bonds of countries like Italy and Spain that are straining under high interest rates."
The court's ruling also stipulated that Parliamentary approval would be required to increase the size of Germany's contribution to the fund, which is currently 190 billion euros, or about $240 billion, the Times reported.
“Once again, Germany today sends a strong signal out to Europe and the world beyond,” Merkel told Parliament. “Germany is decisively true to its responsibility in Europe as the largest economy and a reliable partner.”
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