Sept. 12 - Germany's Constitutional Court giving a conditional green light to the rescue fund means governments are able press ahead with action on the debt crisis, says ING's Carsten Brzeski.
The longest closest. Yeah and take over the sidelines but generally they constitutional court judges give the green light and Europe's bailout fund but the devil is in the detail. Condition number one liabilities of the ESM bailout fund cannot exceed 190 billion euros without approval of the lower house. Condition number two both houses of German parliament must be informed about any ESM decision. Let -- get a view from constant pressure seen a Karzai and Jiabao this no I'm limited liability for Germany it seems constant. I'm no great surprises -- the right. Now there are no real surprise it almost looks like him on the event I think he'd be the court has even be less less strict than than summit expected. Because even this this liability thing the cap on liabilities also conditional wants -- -- thing. If the Bundesbank in the future under the balloons tactic. In the future is in favor of increasing the ES cents firepower they could do it too it's not a cap for good on this time of DSM -- -- The -- conditioned on changes to the ESM needs this. I guess the interesting thing here is it Reid rejects the confidentiality. Clause in the treats you right. Exactly I think we -- we receive that did this immunity -- confidentiality thing. Who will only apply -- five -- yes -- board members. But it doesn't apply when they have to inform the German parliament which means yes the inflammation flow will be there from the ESM. To the German parliament but again I don't see he had that good to our apartment has received -- to intervene it's only that the inflammation flow will be there. What the parliament can or will do -- it. I think death is unclear. Is this a victory for the year and it's again it's a small victory for the year if you combine that with last -- ECB decision. Now we have the -- which means the monetary authority and legal authority off the biggest member states. They've all given the -- -- for the Europe and now read the put the ball is for acute in the field of Goldman's. To make serious business within the reforms with the austerity measures. And also further integration of the Euro zone and who got to finish holocaust and who if anyone eat at anybody has -- on that pays off to this. I don't know it's that finger and right right now its review everyone has found itself. It's it's it's it's it's it's a party together rather good day for for the Euro -- but again. It's far too early. Two -- to call this the end of the year crisis. All right content -- and -- costs and fresh -- -- ING stick with -- is as -- -- -- -- to the polls will examine whether the radical Euro skeptics who gained traction. In a coalition that's on Reuters dot com. And the inside a platform. I'm acts of trouble this differences.