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German Constitutional Court Says May Need Up To Three Months To Deliver ESM Verdict
Earlier today, when futures were soaring, we rhetorically asked whether "A German Constitutional Court Delay Today Cripple The EUphoria?" a delay which "could have “serious economic consequences” for the Eurozone as well as Germany, and in turn would risk placing the entire euro project “in question,” Schaeuble warned." Specifically, in terms of timing we said "Judges during the hearing suggested a two-part decision was likely, first on the injunction in about three weeks, and then in early 2013 on the broader constitutional question." Moment ago, according to CNBC's Sylvia Wadhwa, the court has announced the delay could be as great as large as three months, which in turn would put the Schauble scenario into play.
German Const. Court may take up to three months (!!!) 2 deliver verdict ... Judge says "careful deliberations" needed
— Silvia Wadhwa (@EuroWadhwa) July 10, 2012
At least Jean-Claude Juncker was reappointed and can dispense lies as he sees fit, whenever is critical as he has done during his entire tenure.
Below are German constituional judges in full Spanish hope-crushing garb:
From Spiegel:
The Federal Constitutional Court will take the fast track to appear for euro rescue ESM and Fiscal Pact more time than previously thought. Chief Justice Andrew Voßkuhle announced at the hearing on Tuesday a "constitutionally reasonable inspection" of complaints, which could extend beyond a normal emergency procedures. This could, according to those involved take up to three months.
The law for the ESM had originally been planned to enter on July 1 but was postponed because of complaints filed. For the fast track was actually expected to last up to three weeks.
Voßkuhle explained in a summary trial would indeed usually weighed only the particular disadvantages that arise when the urgent application is granted or not. Such a pure result without consideration of statements about the content of the complaints in a specific case but will probably not understood internationally. The urgent application is upheld, it is stated in the international press: "euro rescue stopped." The applicants were entitled to but a decent two-part process with a thorough examination in the main proceedings.
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Sure ... Just refer it to HOLDER, the Expert ...
Then we can expand it to 2 years ...
This might be a rigged game.
Perhaps the government will now be able to force the president to sign the ESM law AHEAD of any court decision.
Then it will be binding internationally and there will be no way back, no matter what the court decides.
EU is now in the hands of these pretentious little German elves. Classic.
This is the normal look of german bureaucrats. As long as you have the right form, there's no need to fear them.
We now know where Mike Meyers got the inspiration for the Austin Powers costume. Note the self loathing looks on their faces. Appropriate.
I thought the caption should be:
"Men in Hats to decide if it is 'safe' for EU to 'dance' "
Why would anyone need to believe in aliens when the Germans dress up like this shit. Seriously people. Examine your culture. Take a second measure of it. Stop fucking pretending. Martin Luther is dead. Reconnect with reality. Stop soaping up the people.
http://blog.cleveland.com/world_impact/2008/06/large_ZIMBABWE_Meye.JPG
http://www.zentaicharm.com/images/v/201206/b/13407716834.jpg
What is your culture? I am curious!!!
Who gives a fuck what you're curious about. I'm nobody. This has nothing to do with me. So put your perveted freudian analysis text back on the fucking shelf next to your pictures of your mother.
Amazing the tards on ZH can't even recognize the brainwashing behind these shallow illusions of power. What vast miracles inculturation has achieved.
http://nimg.sulekha.com/others/original700/silvia-fernandez-de-gurmendi-...
Holy crappola. The Vatican has relocated to Dusseldorf.
When will the US Supreme Court get to rule on whether the President is entitled to murder US CItizens on US soil ? Or has the Head of the FBI simply stated the Irrelevance of Article III ?
The German court is sure to take a while to make its final decision. But the rest of European countries have to start doing their part. There is a misconception that the "rescue programs" are the solution to European problems. That's not true. Europe must adopt a series of measures and structural changes. The question is, are truly willing to do?
Even the president of the Bundesbank Weidmann said, that ESM is kicking the can down the road and does not solve institutional issues at all. I think that are very clear words by a central banker.
You are essentially saying stupid democracy is in the way for a quick fix paid by taxpayer, after greedy bankers fucked up the world economy.
Art 20 (4) has something to say about that
So we have 3 more months of this.
...just barely enough time for an Italian to squeeze in a vacation.
I was thinking more like a Weekend At Bernie's.
http://www.imdb.com/title/tt0098627/
There's Germany all tied up in the back of the boat. Spain is (of course) driving while Italy is waiting for his turn at the wheel. This ought to be fun.
Looks like France has fallen off his ski...
Anyone know which Italian town this is? Gorgeous.....Maybe if EUR/USD really tanks I can afford to visit... :-)
looks like Portofino type location, aka Ligurian coast.
Looks like Amalfi coast, Positano? was there last year. best f#*kin pizza ever had. better then that tomaoted bread with processed cheezw we get here......
best thin crust pizzas are made with 150-170 gramms of dough. Hard though to swing the dough to a 30 cm diameter with that little material.
Pretty sure is is Positano, Italy.
Speedo sales are waaaay up:
http://chubarama.net/wp-content/uploads/2007/12/534749881-1.jpg
Three months to decide followed by three years to implement.
@fonzannoon
Makes me want to open up a commodities trading group and buy up the Euro with all of my client's money.
funny shit.
...
That's right. All they have to do is step back and watch it implode. The Germans would be foolish to keep dipping their willie in the EU cesspool.
But no injunction though? Where does that leave things?
If I get this right they will take three months for their decision about the injunction.
And that opens a soft spot. A possible later injunction is no injunction and the president might just sign. And than it's fait accompli.
That's my suspicion.
Then later, even if they rule against the ESM (Unlikely) it'll be too late to do anything about it.
Of course, the other way of considering this is that perhaps the German leadership are looking for an excuse to cut the panhandling southern states off and this is exactly what they want to happen - a non-committal delay to the ESM, by the end of which it'll be too late for Spain and Italy.
The trick to keeping faith alive is ambiguity... The FED are masters... but most of the participants are really, really good at it. No critical mass can be achieved, given it would result in breaking containment and leading to meaningful change.
Another EU success. Therefore.......Risk On/Reality Off
Bitchzzzz :)
Probably the time it takes them to print up the new DM and prepare their banks for the currency swap.
Epic bribery initiative commencing....
Perfect....right in time for the Autumn meltdown.
Tick, tock, tick, tock...
what a surprise, more delay games...
Given that one idiot from the European Parliament said that the Court does not understand the comlexity of the matter I propose they take 4 years and get aother PhD before the ruling!
There is something these people know about three months from now. Everything seems to revolve around that time frame.
Obama's re-election ?
Its ok, spain is rushing to get direct bank recaps from EFSF first before anyone can notice whats up.
LIBOR Das Minus Null /Nein Begrenzen.......
"There's no certainty like uncertainty, and uncertainty's no certainty at all."
Bob Dylanschmidt
I beleive the constitutional court has a backlog of 18,000 complaints to look over. Maybe be done in a few years. EZ and the US have run out of assets to rehypothocate. There is no QE3 coming period.
clowns
Oh happy joy! EUR/USD spiking nicely as a result. Money!
CNBC/Silvia just said that Weidmann stated to the court that the markets are questioning the viability of the Euro currency.
I am speachless. Really
Some realistic assessment about this fucked up useless esperanto currency is good!
You gotta admit, those red robes make our Supremes look positive dowdy - and those Hats! Damn, I want one of those Hats, maybe for the next Halloween party.
What a coincidence that their decision may come around just about election time for the next US POTUS.
A decision to decide in another three months - SO European, gotta love it.
Cryin' shame those red robes will have swastikas back on them in a few years.
What's old is new again.
Greisers (Geezers) should never wear red .... makes 'em look older !
Gauck is no friend of merkel. She did everything in her power to prevent him from becoming president. But the last serious president, horst köhler, just quit his job (probably because he did not want to be the one to sign the bailouts), and merkels boy christian wulff was a fluke that was chased out of the office by the media for corruption.
So gauck will not sign the ESM contract before he gets the go-ahead of the constitutional court. However, the constitutional court is made up of party members of the two big german parties CDU and SPD, so it is unlikely that they will do something that really hurts the government. They will probably deliberate for months and then accept ESM, but add some minor criticism of merkel. I am pretty sure of this, so I bought som 10x leveraged bund shorts (DE000CZ33C55).
If by any chance the constitutional court finds some backbone and rejects the ESM, I will lose some money but nevertheless be happy to live in a country with some checks and balances still intact. If they accept the ESM, I will take the profit from shorting bunds and buy some more gold. Win-win.
Why is it that you only find clever Germans on this site?
They "Blitzed" Poland in 30 days ? Monedas 1929 "The Germans aren't as German as they used to be !" ....Yogi Bear
The Court has a real problem. It is evident that the ESM conflicts with the Constitution imposed by Anglo-Americans in 1949. Although it has been amended 60 times since 1949 without the Citizens ever being consulted, Article 123 implementing the Maastricht Treaty stretches the Constitution to breaking point.
With Merkel and Schauble making deals in EU Meetings and then bringing them back to Berlin for rubber-stamping, the Enabling Act of 1933 starts to look as if it has been revived:
http://en.wikipedia.org/wiki/Enabling_Act_of_1933#Text
Article 2 and Article 4 of the Enabling Act of March 1933 are very similar to the effect of the SM vote, especially when Wiki comments
http://tinyurl.com/c2uv5gy
One can predict, that the Federal Government will organize anything, in order to make sure the signature of the President under the laws (consenting to respectively accompanying) the treaties soon after the voting in Bundestag and Bundesrat, and to make sure their published in the official publication paper Bundesanzeiger. In addition to that, the danger is impending, that after the “pushing through” of ESM and Co., they want to change or even replace the Basic Law. There are already voices demanding this. This is the reason, why we have decided, to start our solidarity already today, and to publish here this support tool.
Germans are seeing History repeated and want to stop something this time.....but so few people commenting on this thread have any idea beyond childish comments. Democracy is dead in Britain and fully commercialised in the USA, but a little obstacle remains in that Germans have never voted on a Constitution and their Government wants to dispense with it altogether. The Court has to rule whether it is in fact a Supreme Court at all or simply an adjunct of the European Court of Justice in Luxembourg.
It is as fundamental a constitutional principle as was evident in 1641 in England or 1861 in the United States
Correct. Sad that you need to go back to 1641 and 1861 to find such fundamental principles fought over in England and the U.S. respectively. All signs point to another great catharsis for humanity. Time to re-learn what wealth and value really are.
Hope the people of Germany succeed. Perhap it would inspire the people in the U.S. to defend it's Constitution.
Very good post!
thx, mr sandman for these fine thoughts!
even though the members of The Court were nominated by the political elite, they seem to be very aware of the consequences of their decisions. and I might get the feeling after the first reactions out of the press-room that the Grundgesetz (Basic Law) will be respected completely.
danke, Karlsruhe!
Actually wrong. The court will take upt to three months to decide whether the effects of signing the law will be so damaging that the law (permitting the ESM to be ratified) mustn't become effective until the final verdict (which will follow later) has been spoken. And as it is impossible to get out of ESM they will probably not find a way to get it into th ususal "sign it now and revoke it if we're unhappy" shape at all. So in two months they will tell the president not to sign the law before the final verdict is in (which will take even loooonger).
a three month delay is a political decision in itself of classic can kicking, to see how the wind turns. These judges don't have the cojones to proclaim Montesquieu's principle as the seal of their own liberty : separation of powers. With one eye looking at those who employ them; aka the government, and who pay their pensions/promotions and fringe benefits, they don't want to rock the Euro boat at this critical moment all on their own.
What has Merkel got up her sleeve? If she says NEIN to mutualising debt and accelerating Euro federation she must prepare for QUICK financial Armageddon; as the ECB has no bullets and the FED probably can't do it all on its own. Those banks burn if Spain/ Italy tank on sovereign front as the market is cannibalistic to a point where nobody knows whose piece of ass they bite, but bite they will 'cos otherwise they be not cabalista cannibals! Unthinkable for a HF not to bite juicy exposed ass, whatever the consequeces!
Simple as that and then its back to WS/City for the contagion tango!
Cowards.
Weidmann is right, it is priced in. And Sinn ruined his remaining academic reputation with his foolish target 2 claim. His damage caused to macroeconomics science in Germany is profound. Money markets are adjustung after the ECB decision, it will take time but some blood and is flowing into this dead corpse and most likely there will be a glimpse of a heart beat. If the ECB could switch to real repo, the Euro might be able to avoid Armageddon.
Positive Target2 balance is an abstract claim against the ECB, while there does not even exist any collateral. Sinn is absolutely right, saying that Target2 posing a significant risk. He does not say it does harm.
I didn't expect...the Spanish Inquisition...
Ich bin kein Spanier, das ist ökonomischer UnSinn von Herrn Sinn aus Brake, dummerweise aus meiner Heimat, man muss sich fremdschämen.
Is that you only argument?
No, target 2 is a clearing system for the EMU. Fed, BoJ and BoE are not included. It is an overdraft.
Yes, it is a "clearing" system without clearing date and without any delivery. As long as nobody goes bankrupt everything is fine.
Yep, but what happens to US or UK debt if target 2 goes bust. Needs to be cleared, but how and where and when?
Everybody screams: Save the EU, Save the EU!
What is EU? Where is it going? What are the benefits vs the costs for the middle class?
In difficult times one should get back to the principles.
When you "save" (for how many times and with what effects) some disfunctional entities, you are doing nothing but giving a vote to inefficiency, corruption, incompetence. Mother Nature has invented a mechanism to deal with inefficiency, corruption and incompetence: it is called FAILURE. When you stop this mechanism, you produce nothing else than more incompetence, more inefficiency and more corruption. And do we expect that armed with these attributes we can step out of the crisis? Sooner or later the "financial Armagedon" will take place. Some say that. Maybe is true, but maybe is their voice crying to keep the status quo.
Let the inefficiency and incompetence be destroied, our future is in decent adding value work and TRULY free markets, because what we are seeing now is a pathetic spectacle were a crowd of penguins are waiting with the beaks large open for a fish to come in.
Appearently, you have to have bi-focals or they don't let you on the court. Anyone German who can verify this??