The German Constitutional Court on July 16 announced that it will make a preliminary ruling on the European stability mechanism (ESM) and the EU "financial contract" is unconstitutional on September 12. German media commented that this means that the debt crisis in Europe firewall at least be two months to take effect, but also to the German domestic political situation has brought more uncertainty.
 
German Left Party, part of the Bavarian State politicians and civil society jointly signed by 12,000 people in Germany by the end of June, the lawsuit, said the ESM and the EU "financial contract" in violation of the German Basic Law. Their reason is that these two European debt crisis rescue tools transferring the fiscal sovereignty of Germany, in accordance with the Constitution, only Parliament has the power to determine the taxpayer's tax whereabouts. They also called for Germany to hold a referendum thereon.
 
The German Constitutional Court last week held the first hearing. The German government urged its early decision. Finance Minister Schaeuble said the ruling time delay will exacerbate the turmoil in financial markets, affecting the credibility of the euro area decision-making ability. Some Member States will encounter in financing more difficult to challenge the overall stability of the euro area. "German media said the September 12, according to a statement of the Constitutional Court, it will decide whether to suspend the implementation of the ESM and the EU" financial contract law, means that it is even to the release of these two European debt crisis tools in the future may still be ruling its unconstitutional.
 
European stability mechanism and the EU "financial contract" is the most important rescue tools so far, the EU response to the debt crisis in Europe. Once the German Constitutional Court ruled unconstitutional, the German President of the high g will refuse to sign, ratify their political and economic consequences of self-evident.
 
German "Handelsblatt", warned that September 12 will be decided euro fate of the day, regardless of which tool is stopped will be serious damage to Merkel's political influence and bring about the danger of disintegration of the euro area. Mannheim Morning News said that the European debt crisis rescue tool by the light of the Constitutional Court will find ways to deliberately delay the ruling First, the justices need more time to consider the legal issues, the second is to allow German politicians on this issue adequate discussion. Some German constitutional experts told Reuters that the Constitutional Court may ultimately conditional release to the ESM and the EU "financial contract", but also will present an alert, so that the German government was bound hands and feet in the future EU negotiations.
 
In fact, even if the ESM is effective immediately, Spain and Italy is also far will not be forthcoming. Merkel in EU Xia Jifeng concessions at the hidden foreshadowing, she asked that the European Central Bank after the introduction of a new set of banking supervision system, and then allow the Bank of Spain and Italy from the ESM financing. However, this set off a debate on the German academic. More than 200 German economists published an open letter, any form of banking alliance will bring to Germany the burden of endless; nearly 200 German economists argue that banking alliance is a rational way toward resolving the crisis will not lead to debt-sharing. Interestingly, 11 German economists have signed these two conflicting open letter.
 
German political situation also adds variables. Merkel, on the 15th confirmed that he will seek re-election. She said the 2013 federal election is a referendum on Europe, where to go, and our vision of Europe ". Merkel high to enjoy public support rate of 66%, which is to establish requirements, efforts to protect its economic interests on the basis of her hard-line response to the EU heavily indebted countries. Analysts said that if Germany was forced to make greater sacrifices in the European debt crisis, the dissatisfaction of the German people will be significantly enhanced. Merkel belongs to the ruling coalition at the end of June, the German Federal Parliament on the occasion of the ESM to vote 26 Members voted against.
 
Declared as a position, Merkel reiterated in a television interview in 15: European stability mechanism funds will not be directly used to rescue the banks, even if the final use of the banks, EU governments are still made in this regard guarantees.



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