KARLSRUHE (MNI) – Germany’s Constitutional Court will not be able
to make any final decisions Tuesday about the constitutionality of
Europe’s newly agreed European Stability Mechanism, the chair of the
court said.

Opening a hearing into the ESM and Fiscal Compact, the court’s
President, Andreas Vosskuhle, said he recognized that judges face a
tough decision over whether to grant a temporary injunction — which
would prevent the ESM from taking immediate effect — or allow the
treaty to take effect at the risk that it can no longer be halted if
ruled unconstitutional at a later date.

Vosskuhle emphasized that the court could only hold a hearing over
the injunction itself Tuesday, and would not discuss the broad
constitutional questions stemming from the ESM and Fiscal Compact, which
were both approved last month by Germany’s parliament.

“It is clear that this constitutional court cannot hold a full
substantive, but rather a summary examination, given the tight time
constraints” of the temporary injunction requests, Vosskuhle said. “That
means that a final decision can not be taken in this hearing today about
the constitutionality of the ESM, the Fiscal Pact and its accompanying
laws.”

Vosskuhle did not give any insights in his opening statement into
what kind of decision the court is prepared to make after oral arguments
Tuesday, which are expected to last through most of the day.

Opposition demands for a temporary injunction have already stopped
the ESM from taking effect on July 1 as originally planned. The
Constitutional Court had earlier asked Germany’s president not to sign
the ESM and Fiscal Compact into law until it could rule on the
injunctions.

Opponents have argued the ESM and Fiscal Compact permanently curb
the German parliament’s budgetary powers, and would therefore require a
change of the constitution to be approved. German Finance Minister
Wolfgang Schaeuble and Bundesbank President Jens Weidmann were set to
appear before the court later Tuesday.

A final decision on the constitutionality of the ESM and Fiscal
Compact is not expected until 2013.

— Frankfurt bureau: +49 69 720 142; email: ccermak@marketnews.com

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