…or does it? From The Wall Street Journal:
KARLSRUHE, Germany (Dow Jones)–Germany’s Federal Constitutional Court Wednesday ruled that the euro-zone’s 2010 bailout for Greece and subsequent aid granted through the currency bloc’s rescue fund is legal, eliminating a major hurdle to the sovereign debt crisis response that’s been closely watched by financial markets.
The constitutional court in Karlsruhe also ruled that Germany’s Parliament should have more say in major future euro-zone bailouts, but these would only need approval from the parliament’s budget committee. This requirement is less strict than some proposals circulated by key government lawmakers that call for the plenary’s approval, a move that could stall the pace of future bailout efforts by giving more lawmakers influence to sway the decision process.
GoldCore brings a more realistic perspective to the table:
The German constitutional court rejected the challenge against the Eurozone ‘bail outs’ but said that the ruling shouldn’t be seen as “blanket” approval for future bail outs. Going forward Angela Merkel and the German government must seek approval from the Parliament’s budget committee for new guarantees it assumes under the European Financial Stability Facility.
The writing on the wall though, is Merkel’s recent spanking in elections. Simply, I highly doubt that Germans will accept the institution of an organization that requires 133% of their GDP to bail out every PIG under the sun. They will elect other leaders, when given the opportunity — and those leaders may not be interested in German participation in anything European. Or more worryingly, they may be interested in bringing Europe under German dominion.
Unsurprisingly, this is a big hit for gold:
Of course the market is being very myopic. Just because Germany has decided that the bailouts are constitutional, doesn’t mean that Germany can or will go on forever carrying them out. As UBS recognised recently, the real problem in Europe is the lack of fiscal and monetary harmony: countries can pile up huge amounts of debt in currencies they do not control. And whether or not Germany is willing or able to finance bailouts won’t change that problem.
azizonomics 
When the DAX begins (already has) to follow the Athens Stock Exchange, which is currently down only 80%+ from its peek in late 2007, I’m sure the normally passive German people will continue to bailout their southern neighbors.
I agree that the German High court, had to approve the bailouts, because if they didn’t they would have sparked a crisis, but the Executive is higher than the Judiciary, and over time, political pressure from the German voters will sway decisions. I would suggest a positioning out of the Euro (Gold or Rubles/Yuan-Millitary backing). I am Ukrainian, and the same political meddling by right wing groups in Ukraine, prior to WW2, is happening. Someone wants a buffer from Russia.
It is not hard to find a multitude of Neo Nazi sites in Germany on the net. When the young see how Germany is bailing out other countries, to their detriment, they will want answers. It is not hard to find answers on the internet. Even if they are wrong.
The effort of German industriousness, needs to be rewarded. If I was a German voter I would not be happy, bailing out the PIIGS, because of their Fiscal irresponsibility. In a Democracy, the people vote, even if idiots vote in Lunatics.
It’s History in the making 🙂 and we got front row seats with the right eye-wear. And the warmongering towards Iran is kicking high gear now. it won’t be long till BiBi Netanyahu will pull the trigger to spark WW3. Coz damn are those Iranian revolutionary guards pumped up for some PEW PEW. and no they are not made out of the mercenary/conscript army in Iraq.
Dun DUN DAN DUN !!
I see a fundamental disagreement between Israel and America.
America won’t let Netanyahu pull the trigger unless there is a clear and present threat to the global oil infrastructure, because America is so reliant on global oil. China doesn’t want a conflict with America any time soon, and will stall for as long as possible – with the current shape of the world, China is getting much stronger, and America much weaker, which is why we saw Wen Jiabao playing very friendly in public lately.
Now — Israel wants to fucking do this shit, and fuck up the middle East — while American hegemony is still in play. They’re desperate to start a regional conflagration, and fuck up some Muslims. America equally desperately does not want this, because they know that this would be significant trigger in reshaping the world order, and dragging China, Russia and America into a global conflagration.
At some stage — perhaps with President Rick Perry taking office — the rise of China and diminishing American power — alongside the fact that many in Washington genuinely believe war is the best way out of this economic depression might trigger America to let Israel unleash hell. Washington, along with its allies, may choose to try to enslave the Chinese dragon for centuries more. I hope the real power-players know better, and choose a peaceful world order over a global conventional conflagration — overshowed by the constant threat of nuclear holocaust.
Pingback: Big Change For Europe « azizonomics