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)



 

 

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