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Wednesday, September 12

12th Sep - ESM Ruling Preview

Quick recap of previously posted links. Announcement at 08:00 GMT (10:00 local time). A 'Yes' is overwhelmingly expected, but possible conditionalities are of interest. Someone commented earlier that leaving in limits and conditions (e.g. need for a parliamentary approval on enlargement or new uses) effectively provides Germany a "super-veto" on future europhiling.

ESM Permanent Bailout Fund Prepares for Prime Time Spiegel
The court battle against the permanent euro bailout fund, the ESM, has become the largest in German legal history. Yet despite widespread concerns, fund head Klaus Regling is preparing for action. The most important question surrounding the fund, however, remains to be answered: Will it work?

German Court Decision on Bailout Fund Looms Over Euro CrisisBB
“I think the court will say this is something that Germany can manage,” Clemens Fuest, an economist at Oxford University’s Said Business School, said in a phone interview. Still, the court will likely take an interest in parliamentary involvement and “impose some conditions” on the ESM.

View roundup on German constitutional courtZH
German Constitutional Court Approval of ESM Not a Done Deal; Draghi's Fatal Mistake?Mish’s
A year ago I think a referendum would have passed with flying colors. Now 54% of Germans Want the Constitutional Court to Kill the ESM…I had been thinking the court would easily approve the ESM, but with reservations. However, the OMT changed the odds quite a bit.

New Twists in the Plot (German Court and Greece)Marc to Market
It is difficult to imagine that German Constitutional Court would rule that the ECB's OMT violates the German constitution…decide whether to grant an injection delaying the formal establishment of the ESM and the fiscal compact, while they decide the legality of it at a future date.

The countdown for the ESM: press views on Karlsruhebruegel
On Wednesday Germany’s Federal Constitutional Court (FCC) will announce its decision on the ESM as well as on the Fiscal Pact. Immediately after the decision Chancellor Angela Merkel will react in the German Bundestag with a government declaration to the FCC’s decision. The decision is eagerly anticipated by German and EU politicians as well as of both German and international press and we review the German press here.

No delay from Karlsruhealphaville / FT
Eurointelligence have put together a press wrap ahead of the actual decision, including a consensus that the much favoured ‘Yes-But’ option is a lot trickier than is generally assumed:

German Constitutional Court Ruling: Here’s What to Expect MarketBeat / WSJ
There’s an overwhelming consensus that predicts the Court will affirm the bailout funds, while perhaps hoping to renegotiate some other stipulations for additional say on future aid. But should they block it, there could be some serious ramifications

Another Eventful Week in the Euro AreaPIIE
Progress Toward a Banking Union * The German Constitutional Court * No Stumbling Block in Dutch Elections

German court seen okaying EU bailout fund, strings attachedReuters
Germany's Constitutional Court is expected to give its approval on Wednesday to the euro zone's new bailout fund while insisting on guarantees to safeguard German parliamentary sovereignty and limit Berlin's financial exposure.

ESM Ruling Won’t Be Delayed, Germany’s Top Court SaysBB

What the German Court decision might mean for euro stocks, yieldsSaxo Bank

How to play European financial stocks on the German court rulingSaxo Bank

Eurozone live: German justiceThe World / FT

Welcome to our rolling coverage of the eurozone crisis. German judges today rule on the eurozone’s rescue plans.