Not surprisingly,

the Constitutional Court in Karlsruhe decided yesterday to rebuff the motion for a temporary injunction against Germany's portion of the Euro-area bail-out guarantees, brought by Peter Gauweiler.

As 'Der Spiegel' magazine reports regarding the  court's reasons for the judgment:

 

 

„Das Gericht begründete die Entscheidung mit einer Abwägung der möglichen Folgen für die Allgemeinheit: Würde die Bundesrepublik Deutschland ihre Zusagen zum Rettungspaket auch nur vorübergehend aussetzen müssen, könnte dies nach Einschätzung der Bundesregierung zu einer Vertrauensminderung an den Märkten führen, deren Folgewirkungen nicht absehbar seien.“

Translation:

„The court gave as its reason for the decision the weighing of the consequences for the commonweal: should the Federal Republic of Germany have to withdraw its undertakings regarding the bail-out package, even if only temporarily, this would, according to the assessment of the  Federal Government, lead to a loss of confidence in the markets, the follow-on consequences of which could not be estimated.“

 


As we mentioned in our article a few days ago, when the court sent out its letters asking the various bureaucracies involved in the bail-out for comment on the motion, it intended to get a political fig leaf that would allow it to rebuff the motion for a preliminary injunction. Obviously, the court didn't want to become the scape goat in case such an injunction were to lead to a market crash, regardless of its legal merits.

Naturally, the government declared itself happy with the decision. However, this does not mean that the case has no chance of succeeding. Gauweiler already prevailed at least in part in the Lisbon treaty case, and the concessions the court made to national sovereignty on that occasion may actually help Gauweiler's current case – as he opines that the EU actually exceeded its competencies by approving the bail-out package, and that the decision in fact lacks democratic legitimacy.

This is at odds with article 28 of the German constitution, which guarantees the right to democratic participation. The court in Karlsruhe will once again have to find a way to square the circle if it wants to dismiss Gauweiler's suit. That the EU bail-out decision has very little of what a citizen would regard as 'democratic legitimacy' seems rather obvious. In fact, the entire Eurocracy is somewhat lacking in this respect.

We suspect that ultimately some sort of compromise judgment will result – one that does not save Germany's tax payers from having to pay up, but one that perhaps attaches a few conditions to Germany's participation in the bail-out. In other words, expect another artful cop-out.




Germany's highest court, the Constitutional Court in Karlsruhe

(Photo credit: aep-d.de)




Announcing the judgment in the Lisbon treaty case

(Photo credit: Kai Pfaffenbach/Reuters)



 

Germany's high judges, garbed in their pretty traditional red robes

(Photo credit: Ralph Orlowski/Getty Images)



 

 

Emigrate While You Can... Learn More

 


 

 
 

Dear Readers!

You may have noticed that our so-called “semiannual” funding drive, which started sometime in the summer if memory serves, has seamlessly segued into the winter. In fact, the year is almost over! We assure you this is not merely evidence of our chutzpa; rather, it is indicative of the fact that ad income still needs to be supplemented in order to support upkeep of the site. Naturally, the traditional benefits that can be spontaneously triggered by donations to this site remain operative regardless of the season - ranging from a boost to general well-being/happiness (inter alia featuring improved sleep & appetite), children including you in their songs, up to the likely allotment of privileges in the afterlife, etc., etc., but the Christmas season is probably an especially propitious time to cross our palms with silver. A special thank you to all readers who have already chipped in, your generosity is greatly appreciated. Regardless of that, we are honored by everybody's readership and hope we have managed to add a little value to your life.

   

Bitcoin address: 12vB2LeWQNjWh59tyfWw23ySqJ9kTfJifA

   
 

Your comment:

You must be logged in to post a comment.

Most read in the last 20 days:

  • “In America Money Does Grow on Trees”
      Full Commitment This week provided additional confirmation that America is fully committed to a program of currency destruction.  Decades of terminal intelligence have gotten us to this special place.  We will have more on this in a moment.  But first some words on being fully committed.   Say hello to the provider of bacon... lots of bacon, in this case. [PT]   We have never gutted a hog.  But we hear it is a bloody mess.  The volume of blood that gushes out –...

Support Acting Man

Austrian Theory and Investment

j9TJzzN

The Review Insider

Archive

Dog Blow

THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

Realtime Charts

 

Gold in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Gold in EUR:

[Most Recent Quotes from www.kitco.com]

 


 

Silver in USD:

[Most Recent Quotes from www.kitco.com]

 


 

Platinum in USD:

[Most Recent Quotes from www.kitco.com]

 


 

USD - Index:

[Most Recent USD from www.kitco.com]

 

Mish Talk

     
    Buy Silver Now!
     
    Buy Gold Now!