Wednesday, July 11, 2012

German Constitutional Court set to delay ESM for a further 3 Months

An analysis of the German Constitutional Court statement from Karlsruhe by Pater Tenebrarum on his Acting Man blog is linked from here. That comment concludes as follows:

The upshot is that definitive ratification of the ESM could be delayed by several months.The patience of financial markets will be severely tested if this is in fact the case. Moreover, other countries will no longer deem ratification an urgent matter – which could help trip the whole project up as the contraction becomes more severe and more heads of political incumbents roll.

The times will therefore remain 'interesting' (in the Chinese curse sense) in the near to medium term. Regardless of the fact that the ESM would very likely anyway not have been of sufficient size to truly alter the course of the crisis, the markets will be a tad more nervous if its ratification is held up for so long.

The effect of the ESM is the destruction of the remaining national sovereignty of Euro Group member states which has so far yet to be abnegated in accordance with the machiavellian, and IMO pure evil, Master Plan of Monnet and Schumann



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