BERLIN, Sept. 7 (UPI) — A constitutional court in Germany said it is legal for the country to participate in the international bailout efforts for other eurozone countries.
The Federal Constitutional Court also said Germany’s Parliament at the committee level should be allowed more say in how bailouts are structured, The Wall Street Journal reported Wednesday.
The court ruling gives Chancellor Angela Merkel a green light to pursue her policy of supporting, albeit reluctantly, financial aid in the form of loans for Greece, Portugal and Ireland.
How Merkel’s policy plays out in voting booths is a different matter. Politically, there has been significant opposition to the policy of using German tax revenue to help struggling eurozone allies.
The court’s ruling helped boost stock markets Wednesday. Had the ruling gone the other way with the court preventing Germany from aiding others, the likelihood of default in Greece would have increased.
With the biggest economy in Europe, Germany is set to make the largest contribution to the bailout program that for Greece alone totals $153 billion.