German court to rule in ESM case

Tue, Sep 11, 2012, 01:00

Germany's constitutional court won't delay its ruling on the European Stability Mechanism, the tribunal said in a statement today.

A plaintiff in the case had asked for a delay after the European Central Bank pledged unlimited funds to buy government bonds.

German lawmaker Peter Gauweiler's bid won't change the ruling date scheduled for tomorrow, the court said. Germany hasn't ratified the €500 billion ESM treaty and if it can't join, the mechanism won't be created and other bailout measures might be thrown into doubt.

Last week, ECB president Mario Draghi announced the ECB was ready to buy unlimited quantities of short-dated government bonds of nations signed up to rescues from the ESM or the temporary European Financial Stability Facility the ESM is designed to replace.

Mr Gauweiler's challenge argued the court must block the ESM after Draghi pledged unlimited funds to buy government bonds.