"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Thursday, September 13, 2012

German Constitutional Court ratifies ESM with conditions

German Constitutional Court ratifies ESM with conditions - Telegraph: "A panel of eight judges in the Karlsruhe court overturned the challenges this morning and ruled that the ESM could be signed into law, but it also imposed its own restrictions. It set a maximum contribution from Germany of €190bn which cannot be raised without the approval of the government, and insisted that there must be no unlimited liability."

German court backs ESM rescue fund in double-edged ruling - Telegraph: "The court capped Germany’s ESM share at €190bn and ordered the government to “express clearly that it cannot be bound by the Treaty” if the limit is breached. This stops the ESM increasing Germany’s share if Spain and Italy seek top-up funding. “The cap could prove a real obstacle,” said Raoul Ruparel from Open Europe. Volker Beck from the German Greens said the court had crippled the ESM, while Leipzig law professor Christophe Degenhardt said the eurosceptics had pulled off a coup. “Their main objective has been achieved,” he told Der Spiegel. The ruling kills off hopes of a banking licence for the fund so that it can boost its firepower by tapping the ECB, calling this “incompatible with the prohibition of monetary financing”."

Analysis: Euro zone advancing through obstacle course
Reuters
PARIS (Reuters) - Europe has cleared more key obstacles on the road to containing its sovereigndebt crisis and stabilizing the euro zone after Germany's constitutional court allowed a permanent bailout fund to go ahead. Coupled with a European Central ...

Funds' euro zone exposure rises in August
Reuters
NEW YORK (Reuters) - U.S. prime money market funds boosted their holdings of euro zone bankdebt in August with some reduced worries about contagion from the debt crisis in the euro zone, a report from J.P. Morgan Securities released on Wednesday ...

VEGOILS-Palm oil ends higher on euro zone bailout approval
Reuters
... report that may show tightening soy supply By Anuradha Raghu KUALA LUMPUR, Sept 12 (Reuters) - Malaysia crude palm oil futures edged up on Wednesday after Germany's top court backed a euro zone bailout fund, raising hopes that the debt crisis will ...

Euro zone factories rebound in July, but output still weak
Reuters
But factory output was still down 2.3 percent compared to the same month a year ago, and demand for consumer goods underscored the deep impact of the euro zone debt crisis. Production of durable consumer goods such as televisions, washing machines ...

Europe's new banking plan gets cool German response
Reuters
The reforms, which need to be approved by the European Union's 27 member states, aim to break the link between struggling banks and heavily indebted governments, an interdependence that has exacerbated the debt crisis over the past three years. By ...

Most Europeans See Euro as Bad for Economy: Poll
CNBC.com
... 12 Sep 2012 | 8:48 AM ET. Text Size. By: Reuters. The euro zone debt crisis has badly shaken faith in the euro, with more than half of Europeans seeing the single currency as bad for their economies, according to an opinion poll published on Wednesday.

Dutch Vote in Tight Election
Wall Street Journal
THE HAGUE—The Dutch vote Wednesday in a general election unlikely to give the two leading parties a ruling majority as the country takes a stance on the euro-zonesovereign-debt crisis. Two separate polls Tuesday gave the Liberal Party of Prime ...

Wall Street Journal

MONEY MARKETS-European dlr funding costs cheapest in 15 months
Reuters
The ECB's promise to buy bonds of struggling euro zone states, as well as expectations the Federal Reserve may soon embark in a third round of quantitative easing, has improved sentiment towards riskier assets generally, underpinning European stock ...

Brent oil gains on euro zone bailout, Libya killing
CNBC.com
... be no increase in German financial exposure to the bailout fund without parliament's approval. "I think it should be seen as a positive step in the long road to solving the euro zone debt crisis. I think markets will be relatively pleased with the ...

Irish debt chief says can be choosy on bond return
Reuters
Dublin has begun paving the way towards exiting official funding by returning to long and short-termdebt markets in recent months, a move helped greatly by euro zone leaders agreeing at a summit in June to look at easing Ireland's bank debt. ... who ...

Barroso: ECB should monitor all euro zone banks — RT
By RT
The European Central Bank should oversee all the 6000 banks in the euro zone, European Commission President Jose Manuel Barroso suggested on Wednesday, calling it a "quantum leap" towards a banking union. ... The eurozone countries should continue steps to create fiscal, political and banking union to secure the stability of the euro, according to Mario Draghi, Head of European Central Bank. But they should avoid extremes, while trying to curb the crisis. Eurozone crisis ...
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euro zone debt crisis | South China Morning Post
Greece acknowledged on Monday it was having trouble persuading its foreign lenders to accept a plan to save nearly 12 billion euros over the next two years, ...

Tag: Euro zone debt crisis — MercoPress
Tag: Euro zone debt crisis ... show of mass support for autonomy from Madrid, blaming Spain's economic crisis for dragging their wealthy region down.

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