German Constitutional Court May Take 3 Months to Rule on ESM; Finance Minister Wolfgang Schäuble Warns of “Uncertainty”
The “fast track” for constitutional review of the ESM in Germany just got a lot slower. Via Google Translate (further modified by me for clarity), Der Spiegel reports ESM Review Probably Longer Than Planned
Karlsruhe – The Federal Constitutional Court fast track review of the euro rescue ESM and Fiscal Pact may take more time than previously thought. Chief Justice Andrew Voßkuhle announced at the hearing on Tuesday a “constitutionally reasonable inspection” of complaints could extend beyond a normal emergency procedures. This could, according to those involved take up to three months.
The fast track was originally expected to last up to three weeks.
Schäuble warns of market uncertainty
Finance Minister Wolfgang Schäuble (CDU), stated that in his opinion a clear shift of the July ESM also “could mean a considerable uncertainty in the markets.”
A stop of the bailout could lead to “serious economic dislocation, with unforeseeable consequences” for the Federal Republic, said Schäuble.
“Avoid constitutional doubts about the ability or the willingness of the Federal Republic of Germany, threats to the stability of the euro zone could lead to the current crisis symptoms were significantly increased,” said Schäuble. The speculation about the euro-exit of some countries would be fueled. This brings no foreseeable risks for the German economy, such as during the 2009 crisis, the minister said.
The last two paragraphs above are as directly translated. The rest contains slight rewordings by me for ease in reading.
Reflections on “Uncertainty”
This is one of the few recent instances of the use of the word “uncertainty” that actually makes any sense. In most other instances lately, the word “uncertainty” was conveniently substituted for something tantamount to “economy is clearly falling apart”.
In this case we do not know how the court will rule.
However, that the ruling may take as long as three months is a clear indication the recent challenges to the ESM are not a trivial matter that can be easily dismissed.
That much is certain. So is the fact that Schäuble doesn’t care for that message one bit.
Mike “Mish” Shedlock
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