Court rules German bailout of eurozone to be legal
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Steve Chiotakis: A German court today ruled it was legal for Germany to help bailout European neighbors Ireland and Greece. But as part of the ruling, it’ll now be harder for other countries who might be looking for financial help. Germany is Europe’s biggest economy, and so bears the biggest burden of any bailout.
The BBC’s Tristana Moore is with us now from Berlin with the latest. Hi Tristana.
Tristana Moore: Hi.
Chiotakis: Walk us through today’s court decision in Germany. Who’s claiming victory?
Moore: Well, I mean I think the German government and the German chancellor Angela Merkel are claiming victory because, after all, Germany’s constitutional court upheld the legality of the German government’s rescue packages for Greece and other countries in the euro zone last year.
Chiotakis: There are very unpopular bailouts, right?
Moore: Yeah, they’re extremely unpopular. German taxpayers just can’t understand why their money is being used to put the financial house in order of other countries’ governments which haven’t really got their act together.
Chiotakis: And what does this ruling mean, Tristana, for the debt crisis as a whole?
Moore: Well, I mean, markets have reacted very positively here so far. After all, the judges in Germany’s highest court said that the billion dollar rescue packages for Greece and other euro zone members last year were compatible with German and EU law. Bur the judges did however say that in the future, the German parliament would have more say on other contributions to the euro zone rescue schemes. So in actual fact, it could actually complicate negotiations over future crisis measures, and may actually limit Chancellor Merkel’s room for maneuver.
Chiotakis: The BBC’s Tristana Moore in Berlin. Tristana, thank you.
Moore: Thank you.