by Staff Report of the Daily Bell.
Free-Market Analysis: As expected, the German constitutional court ruled yesterday that Chancellor Angela Merkel‘s bailouts of Europe were constitutional but that a Parliamentary subcommittee needs to approve Merkel’s moves in the future.
The Treaty clearly states such bailouts are unconstitutional but in such instances, justices can apparently determine unstated and invisible penumbras of meaning (as the US Supreme Court has done in the past) that provide a different context and justify almost any interpretation.
The decision was in line with what many had expected; really, anything else would have precipitated an immediate political and economic firestorm, even though what Merkel has been arranging on a regular basis with France’s Nikolas Sarkozy is questionable in the extreme. (And Germans WILL ask questions, and are beginning to do so.)
Most recently, Merkel and Sarkozy have agreed to a closer political-economic union to begin in a few years’ time. It is one that may necessitate changes to the EU‘s operating treaty, though. Why Merkel believes she can commit her fellow Germans to becoming part of a larger French-German entity is somewhat unclear, especially since her own party keeps losing elections as a result of her integrationist policies.
read full article at source: http://www.thedailybell.com/2899/German-Court-Makes-EU-Survival-More-Difficult