Court rejects challenge to German role in eurozone bailout

Описание: (7 Sep 2011) SHOTLIST
AP TELEVISION
1. German and European Union flags
2. Exterior of Federal Constitutional Court
3. Court sign
4. Reporters and officials gathering outside courtroom ahead of ruling
POOL
5. Wide of Federal Constitutional Court judges standing after entering court room, zoom in as they take off hats and take their seats
6. Mid of Peter Gauweiler, Conservative legislator who sued to try to stop Germany from adopting the euro and challenged the bailout, in audience, standing up and bowing
7. Wide of audience, representative of Federal Government standing up
8. Mid of Andreas Vosskuhle, Federal Constitutional Court chief justice
9. Pull out and pan as audience members stand up for announcement of the ruling
10. SOUNDBITE (German) Andreas Vosskuhle, Chief Justice of Federal Constitutional Court:
"In the name of the people, the lawsuits will be connected for a joint decision. The constitutional complaints are rejected."
11. Wide of courtroom
12. Mid of panel of judges
13. Mid of audience
14. SOUNDBITE (German) Andreas Vosskuhle, Chief Justice of Federal Constitutional Court:
"The tenor of this decision is extremely tight, but therefore it should not be misinterpreted as a constitutional blank cheque for further rescue packages."
15. Camera pan right over podium and audience
STORYLINE
Germany''s high court on Wednesday upheld the country''s participation in eurozone bailout funds, but ruled that parliament should be more involved in such decisions.
The ruling means that while Germany''s agreement to take part in the financial rescue of Greece will not be affected, participation in future bailouts might become more complicated.
Presiding Judge Andreas Vosskuhle said even though the Federal Constitutional Court had rejected lawsuits arguing that Germany''s participation had violated parliament''s right to control spending of taxpayer money, it was not giving a rubber-stamp to the chancellor''s office.
The verdict "should not be misinterpreted as a constitutional blank cheque for further rescue packages," Vosskuhle told the court.
In a rushed vote, Germany''s parliament agreed to join in the May 2010 bailout of Greece to keep it from defaulting on its debts, and to back the 440 billion euro (620 billion US dollar) European Financial Stability Facility with some 147 billion euros (207 billion US dollars) in loan guarantees.
In future, Vosskuhle said there should be greater involvement from parliament in such decisions.
The suits were filed by Conservative legislator Peter Gauweiler and a group of professors who challenged the bailout.
They argued that parliament''s budgetary rights were undermined by the country''s participation in the bailout packages, among other things.
Europe''s response to the debt crisis has already been criticised as too slow, and additional requirements to consult parliament could slow the fund''s reaction time to the crisis.
European leaders agreed to increase the bailout fund''s flexibility at a July 21 summit, giving it the right to buy the bonds of financially weak governments, help recapitalise banks, and quickly loan money to countries before they get into a full-blown debt crisis.
But the changes have run into hurdles.
Finland has demanded collateral from Greece for its contribution, leading to more negotiations, while a junior governing party in Slovakia says no vote can be held until December.
The ruling comes ahead of a vote in Germany''s lower house of parliament at the end of the month on whether to increase the size and scope of the EFSF, which is widely expected to pass.

Find out more about AP Archive: http://www.aparchive.com/HowWeWork
Twitter:   / ap_archive  
Facebook:   / aparchives   ​​
Instagram:   / apnews  


You can license this story through AP Archive: http://www.aparchive.com/metadata/you...