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German Constitutional Court Halts EFSF Approval, Issues Temporary Injunction On Further Bailout Decisions
The German constitutional court has already played a substantial role in the country's participation in the European bailout. Back in September when noting the first participation of the court in the European rescue machinery we noted that "giving the Bundestag’s Budget Committee the final say over the use of the bailout fund is welcome from a democratic point of view, but will add another element of uncertainty to the eurozone crisis. However, so far the Budget Committee has consistently taken the government line on the bailout, albeit reluctantly, and it remains to be seen whether it dares to exercise its new power." It appears the court has once again decided to step up only this time not in a favorable light, after, as Spiegel reports, that the court has "issued a temporary injunction banning the nine-person committee in the Bundestag from taking any decisions on the deployment by EFSF of German taxpayer money." In addition to this, the Court also put the whole German fast-track approval process in jeopardy after it expressed "doubts about the legality of a new panel of lawmakers set up by the German parliament to reach quick decisions on the release of funds from the euro bailout mechanism." This is hardly the ringing endorsement the EURocrats needed to hear from the only power in Europe with the funds to keep the EMU together.
From Spiegel:
Germany's highest court has issued a temporary injunction banning the work of a new panel convened by the country's parliament to quickly green-light decisions on disbursement of taxpayer funds through the euro bailout program. The decision could lead to further delays in German decision-making in efforts to rescue the beleaguered common currency.
Germany's Federal Constitutional Court on Friday expressed doubts about the legality of a new panel of lawmakers set up by the German parliament to reach quick decisions on the release of funds from the euro bailout mechanism, the European Financial Stability Facility (EFSF). The court issued a temporary injunction banning the nine-person committee in the Bundestag from taking any decisions on the deployment by EFSF of German taxpayer money.
The special committee was recently created in order to be able to provide a quick green light for EFSF aid in especially urgent situations in which it wouldn't be feasible to put the issue up for a vote before full parliament. The decision from the court, located in Karlsruhe, could also slow down Bundestag approval of the further application of German credit guarantees within the scope of the euro backstop fund.
SPD members of parliament Peter Danckert and Swen Schulz submitted their complaint on Thursday, expressing their concern that the nine-member panel might violate their rights as members of the legislative chamber.
Germany's own supercommittee:
The committee had been scheduled to convene its very first meeting on Friday. In September, Germany's highest court ruled that the Bundestag must be given a greater say in euro bailout decisions given the degree to which the common currency rescue could impose on parliament's right to create Germany's budget. In response, the Bundestag on Wednesday moved to include provisions for parliamentary co-determination of positions taken by Germany on the euro bailout at European Union summits in Brussels. Under the multilevel process, depending on the importance, the urgency and confidentiality, decisions can either be approved by the entire 620-member Bundestag, by the 41-person budget committee or by the nine-member special panel.
And we thought decisions made by our own central planning 10-person Fed supercommittee were bad: Germany just one upped our own all-knowing overlords with its very own 9-person star chamber, which without a shadow of a doubt, represents the entire German population with perfect accuracy.
Logically, we next expect the 9 member special panel to be also made redundant by a 1 person uber-committee. That will occur at roughly the time the much anticipated Keynesian fireworks begin...
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What you talkin' 'bout German Constitutional Court?
here comes the mega fade.
That would be lovely.
It is just a temporary ban after the fact. Unless the ban is made retroactive (which is possible in German law), the ESFS has passed through and been approved by the German government.
Seems they are a bit late to the party no? The Genie is already out of the bottle
or maybe they are just trying to save face, after rubber-stamping the sellout of their country a few weeks before
In a country where http://lmgtfy.com/?q=truth+is+no+defence+germany anything is possible
"In the German legal system no privilege protects the evidence of witnesses in court. If a defendant, or his attorney, says something in court that repeats the "crime" for which he is being tried, he can be charged again. This makes it all but impossible for defendants in "thought crime" cases to present effective arguments and pertinent evidence."
Do you believe Merkel/CDU response?
Chancellor Merkel's government said a temporary court ban affecting the Euro rescue fund will not have any impact on Germany's ability to react to the debt crisis- Until the court makes its final ruling, the operational capacity on the government is unhindered in relation to the rescue fund according to Peter Altaimer, the deputy leader of the CDU
De-Nationalsozialistische Deutsche Arbeiterpartei
Small "obstacle", will be overcome, just like the many others earlier this year. Bye bye crisis.
Looks like the road to feudalism is paved with some more ''obstacles''.
Some maroons on our revered SCOTUS have indicated they look to European law for direction on things that pertain to their interpretation of our Constitution (which was written to get us AWAY from Europe).
If they have to look that way, maybe this is where they should start.
Would it not be more appropriate to change "star chamber" to "black hole"?
How do you say TRANSITORY in German?
Donaudampfschiffahrtselektrizitätenhauptbetriebswerk-bauunterbeamtengesellschaft! - in one word
You dont get it LWA....this is not about 'pump to the moon' this is about cleaning out both longs and shorts for all theyre worth.
Pump n Dump, bitchez!
Hahahaha to infinity!
This is fast becoming my favorite sit-com!
What would the sit-com title be?
"Beggar My Neighbour"?
'How I Made my Trillions, by Moochin' Off my Big Red Commie Neighbor'!
Green light, red light...memories
what is this pesky constitution thing?
Thank god we dont have one of those.
I think it has something to do with how many chili cheese dogs you can eat...
Thank god we dont have to follow one of those.
Fixed it
i really wish that "fixed it" meme would die.
I'll go out on a limb here and say this:
Bad cop good cop situation happening in Germany, as Germany really doesn't want this EFSF thing to happen. This timely fly in the ointment is exactly that.
You know the Germans are saying among themselves"we used to have leaders who knew how to take care of things."
Hmmm... Germany wants a strong EUR, right?
They just do not want to finance the other ones.... enough burden with the Hartz 4 people...
Only until the Reichsmark is ready...
*EUROPEAN CENTRAL BANK SAID TO PURCHASE ITALIAN, SPANISH BONDS
These are the (now daily) headlines the Germans wanted to go away. They might have increased the "democracy" by setting up the Bundestag budget committee but the little improvement is completely undone by ECB.
World population is expanding and power is concentrating into the hands of a very few who are unaccountable to anyone. May the court in Karlsruhe strick down this fascist move and strick a victory for freedom.
Amen brother. Iceland is the model... give the banksters a big middle finger that reads "pan-european default". (We may be hoping for too much...)
yes yes we know all this staff... go short and after politiciens go for bailout all poor very rich people, and leave alone all the rest.
so, berlusconi is giving one ruby for each member of the G20 to arrange everything, bravo. this is really what we need, to hear about miracles of corrupt politiciens and banks. congratulatios financials, world is really better since yesterday.
Aaaaaaand...CLUSTERFUCK. Whoopy!!!
"Basic Law","Human Rights","Media Crimes." They have not forgotten...nor do they wish to relive. Imagine serving the interests of Justice? Anything else is, well...simply criminal.
http://www.youtube.com/watch?feature=player_detailpage&v=H5pML6hMVGM
This should cause another ramp up of 200 points.. because hope never dies..
Our only hope is that the German or the Greek politicians botch this.
If not, results will be gruesome. CDS:s are worth nothing. Banks will suffer either from haircut or loss of CDS business.
After all, Greece is a very small part of even EU, letting them sort out their problems themselves would cause least damage.
Of course Greece wuold have to pay but they have paid pensions to dead people and even the loggers had increase of pay because they needed to work outside.
Quick...call Cheney!! He's good at that whole Constitution bypass thingy.
In the mean time, the futures are down a whole "huge" .49%...wow, gee.
What a team. Dick "well just shoot me in the face" Cheney to bypass the Constitution and O'Bummer to go around CONgress. Man, thats democracy in action. Hahahahahahah
It is Democracy in action. That's why America was set up as a Limited Constitutional Republic ( Rule of law NOT of a mob of man).
Buwahahahahaah!!!!!!
More controlled opposition to make the German population think they actually have a say.
This just ramps up the fear factor so we again grasp on to the hopes of success being tomorrow.
They need the constant hope of a deal, because using math, they cannot actually implement a fix that will work.
pods
finally, someone still awake to some ideas of law and contract. if governments can essentially announce huge debt foregiveness and therefore ignore contractual obligations (i know they claimed to have consent but it appears coerced and therefore there was no free will) the next logical step is for individuals and private businesses to ask - why not us? why can't we simply announce that because we can't pay, our debt should be forgiven. this is the quintessential slippery slope if allowed
Sarkozy the clown was on French TV yesterday, apart from his ineptitude and ignorance, he clearly is driving more people into the arms of the socialists (they will save the day of course) and the ultra right wing nationalist party (who are unfortunately the only ones advocating Greece steps out of the EU and discussing the monetary issue). Alas no such court in France.
We'll reach the point when some democracy will need be exported to Europe soon...
I can see it now: Sorry EUROZONE we really really wanted to bail you chumps...errr.member countries out, but like our Courts, um...like said we couldn't or something.
But Cramer absolutely creamed his pants yesterday. I thought a 20% rise in a little less than three weeks is absolutley sustainable. 1500 points in three weeks gets us to all time highs before Christmas. Can't we have one last great christmas present to make Americans feel good?
Market tanks because everyone worries banks will need to take losses on Greek debt. Market skyrockets because we find out banks will take losses on Greek debt. That makes perfect sense.
Just like how oil and copper can have some of the largest increases in history over a one week period even though no real increase in demand has been seen. The market doesn't represent reality but it affects eveyone's life, nearly negative to all but the few who only make a living by trading paper.
Anyone else think that these last three years have been a long catastrophe film whose theme is the failure of left center and conservative "democrat" politics?
No, more like the laws of physics catching up with the kleptocracy of the world that has been pushing an infinite growth model on a finite planet while making sure that the people who labor to add REAL value to the system are crushed while paper-pushing fucknuts enjoy a 1,000,000,000,000x bump in their compensation.
Got physical? Because things are about to get physical.
the fall of rome.
More like e^(anything) wont work in a finite world.
pods
I believe that the last three years has been a display of how far politicians of all stripe are buried in the pockets of bankers.
As that one kid on the simpsons always says "Ha ha". Glad I hedged my bets this week. I know many who did not.
You mean the ECB can't just shove the German, Italian, French governments aside? Huh.
Yes, they represents all not enslaved german population.
So we should expect a 3.5% drop in the S&P500 tonight right? I mean this is fuckin bullshit.
Sell your fucking house on a rumor and a picture of Merkel and Sarko shaking fucking hands.
Fuck this shit.
Yea its all beyond insane at this point. I just view all this now as my new entertainment, cancel the cable and free streaming movies, all mere childs play compared to this show.
Es besteht aus Hündinnen!
All this EFSF bullshit will never work, I'm going to cash in my 401k when the market opens. I advised all my clients, friends and family to do the same!!!
Ahhh zz Fatherland, always the pain in Europe's side... But I mean comon' can you blame them they're one of the few countries left with a somewhat viable economy...
The court action is simply a hedge to Merkel's promises to commit to EU deal.
"Star Chamber"
...hooray?...
So, Do you think there is any chance our Supreme Masters Court will step up to the plate and declare the Super Congress unconstitutional?
checks and balances bitches
german instit court has power over government, and itf frequently using it
they have increasingly rendered laws unconstitutional and made the gov change them
good changes that they will do the same with the committees
but it dont matter, bc then merckel has to go everytime to the whole bundestag, but there are enough bitches wholl go along anything anyway
spd wants further european integration anyway (eurobonds), so do the greens
so all itll do is prolongue decision making
How can they let a little thing like "the constitution" get in the way of bailing the Banks?