German parliament will have its say

Two days before it was due to be made public, on 7 September, Der Spiegel reports on a German legal ruling on the constitutional compliance of Berlin’s contribution to European bailouts. According to the weekly, the judges in the Constitutional Court in Karlsruhe have agreed that the Federal Parliament should substantially participate in all further bailout measures" - that is to say that the German government will no longer be able to reach agreement with its European partners without the sanction of parliament.

The fact that the decision has come in the run-up to the parliamentary debate and vote on the Greek bailout is “in part a coincidence, and partly intentional,” explains the chairman of the court’s panel of judges. At the same time, Spiegel notes that "all the parties are on the verge of accepting a compromise” on power of decision on the issue.

”The government has understood that it will have to allow MPs the right to intervene," explains Spiegel. The German representative in the EFSF will no longer be able to give his agreement without permission from the Bundestag — otherwise he will be obliged to use his veto.” And this policy will prevail “notwithstanding the doubts expressed by Finance Minister Wolfgang Schäuble […] who is afraid the EFSF will not be able to respond sufficiently quickly” to fresh developments in the crisis.

“However the Chancellor, who is working to ensure that a majority of the members of the ruling coalition will vote with her on the issue, has acceded to MPs demands.” Der Spiegel quotes one of the judges from the Constitutional Court panel who remarks: “The prerogative to decide on the budget is one of parliament’s crown jewels. When the monarch decides to sell off family heirlooms, she is likely to find that her freedom to do so is limited.”