This page has been archived and commenting is disabled.

German Constitutional Court Says May Need Up To Three Months To Deliver ESM Verdict

Tyler Durden's picture


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.

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.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 07/10/2012 - 10:55 | 2602075 BaBaBouy
BaBaBouy's picture

Sure ... Just refer it to HOLDER, the Expert ...

Then we can expand it to 2 years ...

Tue, 07/10/2012 - 10:58 | 2602116 OttoMBMP
OttoMBMP's picture

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.

Tue, 07/10/2012 - 11:05 | 2602144 Precious
Precious's picture

EU is now in the hands of these pretentious little German elves.  Classic.

Tue, 07/10/2012 - 11:08 | 2602163 zilverreiger
zilverreiger's picture

This is the normal look of german bureaucrats. As long as you have the right form, there's no need to fear them.

Tue, 07/10/2012 - 11:13 | 2602176 Precious
Precious's picture

We now know where Mike Meyers got the inspiration for the Austin Powers costume.   Note the self loathing looks on their faces.  Appropriate.

Tue, 07/10/2012 - 11:35 | 2602298 Thamesford
Thamesford's picture

I thought the caption should be:

"Men in Hats to decide if it is 'safe' for EU to 'dance' "



Tue, 07/10/2012 - 11:47 | 2602314 Precious
Precious's picture


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.


Tue, 07/10/2012 - 11:49 | 2602355 OttoMBMP
OttoMBMP's picture

What is your culture? I am curious!!!

Tue, 07/10/2012 - 11:59 | 2602380 Precious
Precious's picture


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.



Tue, 07/10/2012 - 12:23 | 2602448 The Big Ching-aso
The Big Ching-aso's picture



Holy crappola.   The Vatican has relocated to Dusseldorf.

Tue, 07/10/2012 - 11:44 | 2602336 Sandmann
Sandmann's picture

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 ?

Tue, 07/10/2012 - 11:16 | 2602203 Stock Tips Inve...
Stock Tips Investment's picture

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?

Tue, 07/10/2012 - 14:57 | 2603077 Bunga Bunga
Bunga Bunga's picture

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.

Tue, 07/10/2012 - 14:55 | 2603061 Bunga Bunga
Bunga Bunga's picture

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.



Tue, 07/10/2012 - 12:17 | 2602479 Sandmann
Sandmann's picture

Art 20 (4) has something to say about that

Tue, 07/10/2012 - 10:51 | 2602076 fonzannoon
fonzannoon's picture

So we have 3 more months of this.

Tue, 07/10/2012 - 11:01 | 2602089 hedgeless_horseman
hedgeless_horseman's picture



So we have 3 more months of this.

...just barely enough time for an Italian to squeeze in a vacation.

Tue, 07/10/2012 - 11:13 | 2602196 Cognitive Dissonance
Cognitive Dissonance's picture

I was thinking more like a Weekend At Bernie's.

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.

Weekend at Bernie's

Tue, 07/10/2012 - 12:21 | 2602488 gmrpeabody
gmrpeabody's picture

Looks like France has fallen off his ski...

Tue, 07/10/2012 - 11:35 | 2602301 BlandJoe24
BlandJoe24's picture

Anyone know which Italian town this is?  Gorgeous.....Maybe if EUR/USD really tanks I can afford to visit... :-)

Tue, 07/10/2012 - 11:57 | 2602394 falak pema
falak pema's picture

looks like Portofino type location, aka Ligurian coast. 

Tue, 07/10/2012 - 12:34 | 2602523 Mark Carney
Mark Carney's picture

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......

Tue, 07/10/2012 - 13:01 | 2602578 Ratscam
Ratscam's picture

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.

Tue, 07/10/2012 - 13:27 | 2602738 XitSam
XitSam's picture

Pretty sure is is Positano, Italy. 

Tue, 07/10/2012 - 13:51 | 2602837 JohnKozac
Tue, 07/10/2012 - 10:56 | 2602111 Getting Old Sucks
Getting Old Sucks's picture

Three months to decide followed by three years to implement.

Tue, 07/10/2012 - 11:03 | 2602146 Cursive
Cursive's picture


Makes me want to open up a commodities trading group and buy up the Euro with all of my client's money.

Tue, 07/10/2012 - 11:36 | 2602306 fonzannoon
fonzannoon's picture

funny shit.

Tue, 07/10/2012 - 10:52 | 2602077 BaBaBouy
BaBaBouy's picture


Tue, 07/10/2012 - 10:53 | 2602090 sunaJ
sunaJ's picture

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.

Tue, 07/10/2012 - 10:54 | 2602091 Quintus
Quintus's picture

But no injunction though?  Where does that leave things?

Tue, 07/10/2012 - 11:00 | 2602135 OttoMBMP
OttoMBMP's picture

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.

Tue, 07/10/2012 - 11:08 | 2602162 Quintus
Quintus's picture

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.

Tue, 07/10/2012 - 11:25 | 2602247 MachoMan
MachoMan's picture

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.

Tue, 07/10/2012 - 10:54 | 2602092 Peter K
Peter K's picture

Another EU success. Therefore.......Risk On/Reality Off

Bitchzzzz :)

Tue, 07/10/2012 - 10:54 | 2602093 NIRee
NIRee's picture

Probably the time it takes them to print up the new DM and prepare their banks for the currency swap.

Tue, 07/10/2012 - 10:54 | 2602095 icanhasbailout
icanhasbailout's picture

Epic bribery initiative commencing....

Tue, 07/10/2012 - 10:54 | 2602096 Martial
Martial's picture

Perfect....right in time for the Autumn meltdown.

Tue, 07/10/2012 - 10:57 | 2602112 ThunderingTurd
ThunderingTurd's picture

Tick, tock, tick, tock...

Tue, 07/10/2012 - 10:58 | 2602123 john39
john39's picture

what a surprise, more delay games... 

Tue, 07/10/2012 - 11:04 | 2602148 Nussi34
Nussi34's picture

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!

Tue, 07/10/2012 - 11:05 | 2602151 Dr. Engali
Dr. Engali's picture

There is something these people know about three months from now. Everything seems to revolve around that time frame.

Tue, 07/10/2012 - 11:45 | 2602341 Monedas
Monedas's picture

Obama's re-election ?

Tue, 07/10/2012 - 11:06 | 2602155 Conman
Conman's picture

Its ok, spain is rushing to get direct bank recaps from EFSF first before anyone can notice whats up.

Tue, 07/10/2012 - 11:10 | 2602161 The Big Ching-aso
The Big Ching-aso's picture



LIBOR Das Minus Null /Nein Begrenzen.......

"There's no certainty like uncertainty, and uncertainty's no certainty at all."

Bob Dylanschmidt

Tue, 07/10/2012 - 11:08 | 2602169 sudzee
sudzee's picture

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.

Tue, 07/10/2012 - 11:12 | 2602185 BlackVoid
BlackVoid's picture


Tue, 07/10/2012 - 11:12 | 2602186 Bogdog
Bogdog's picture

Oh happy joy! EUR/USD spiking nicely as a result. Money!

Tue, 07/10/2012 - 11:13 | 2602191 Peter K
Peter K's picture

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

Tue, 07/10/2012 - 11:17 | 2602211 Nussi34
Nussi34's picture

Some realistic assessment about this fucked up useless esperanto currency is good!

Tue, 07/10/2012 - 11:17 | 2602214 Nobody For President
Nobody For President's picture

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.

Tue, 07/10/2012 - 11:24 | 2602238 Bogdog
Bogdog's picture

Cryin' shame those red robes will have swastikas back on them in a few years.

What's old is new again.

Tue, 07/10/2012 - 11:52 | 2602368 Monedas
Monedas's picture

Greisers (Geezers) should never wear red .... makes 'em look older !

Tue, 07/10/2012 - 11:29 | 2602276 archibald tuttle
archibald tuttle's picture

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.

Tue, 07/10/2012 - 11:36 | 2602308 Peter K
Peter K's picture

Why is it that you only find clever Germans on this site?

Tue, 07/10/2012 - 11:42 | 2602311 Monedas
Monedas's picture

They "Blitzed" Poland in 30 days ?             Monedas       1929         "The Germans aren't as German as they used to be !" ....Yogi Bear

Tue, 07/10/2012 - 11:40 | 2602322 Sandmann
Sandmann's picture

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:

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  

During the negotiations between the government and the Centre Party, it was agreed that the government should inform the Reichstag parties of legislative measures passed under the Enabling Act. For this purpose, a working committee was set up, chaired by Hitler and the Centre's chairman Kaas. However, this committee met only three times without any major impact and rapidly became a dead letter.

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




Tue, 07/10/2012 - 11:46 | 2602342 LawsofPhysics
LawsofPhysics's picture

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.

Tue, 07/10/2012 - 12:00 | 2602411 Getting Old Sucks
Getting Old Sucks's picture

Hope the people of Germany succeed.  Perhap it would inspire the people in the U.S. to defend it's Constitution.

Tue, 07/10/2012 - 15:05 | 2603125 Bunga Bunga
Bunga Bunga's picture

Very good post!

Tue, 07/10/2012 - 15:23 | 2603190 alfman
alfman's picture

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!

Tue, 07/10/2012 - 12:21 | 2602486 noses
noses's picture

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).

Tue, 07/10/2012 - 12:30 | 2602513 falak pema
falak pema's picture

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! 

Tue, 07/10/2012 - 12:36 | 2602527 JLee2027
JLee2027's picture


Tue, 07/10/2012 - 12:53 | 2602593 Cangoroo
Cangoroo's picture

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.

Tue, 07/10/2012 - 15:09 | 2603141 Bunga Bunga
Bunga Bunga's picture

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.

Tue, 07/10/2012 - 13:47 | 2602816 MillionDollarBoner_
MillionDollarBoner_'s picture

I didn't expect...the Spanish Inquisition...

Tue, 07/10/2012 - 14:00 | 2602863 Cangoroo
Cangoroo's picture

Ich bin kein Spanier, das ist ökonomischer UnSinn von Herrn Sinn aus Brake, dummerweise aus meiner Heimat, man muss sich fremdschämen.

Tue, 07/10/2012 - 15:11 | 2603146 Bunga Bunga
Bunga Bunga's picture

Is that you only argument?

Tue, 07/10/2012 - 15:48 | 2603306 Cangoroo
Cangoroo's picture

No, target 2 is a clearing system for the EMU. Fed, BoJ and BoE are not included. It is an overdraft.

Tue, 07/10/2012 - 16:03 | 2603372 Bunga Bunga
Bunga Bunga's picture

Yes, it is a "clearing" system without clearing date and without any delivery. As long as nobody goes bankrupt everything is fine.

Tue, 07/10/2012 - 16:20 | 2603428 Cangoroo
Cangoroo's picture

Yep, but what happens to US or UK debt if target 2 goes bust. Needs to be cleared, but how and where and when?

Tue, 07/10/2012 - 15:48 | 2603303 chogopogo
chogopogo's picture

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. 

Tue, 07/10/2012 - 23:30 | 2604733 Bringin It
Bringin It's picture

Appearently, you have to have bi-focals or they don't let you on the court.  Anyone German who can verify this??

Do NOT follow this link or you will be banned from the site!