European Stability Mechanism and German Constitutional Court Ruling
Foreign and Commonwealth Affairs
David Lidington (Minister of State (Europe and NATO), Foreign and Commonwealth Office; Aylesbury, Conservative)
The court added caveats to its decision: first that the Bundestag must be fully involved in the relevant decisions and give formal approval to use of the ESM; secondly that there should be a ceiling for German liability of €190 million and that this cannot be increased without the Bundestag’s approval; and thirdly that the requirement of professional secrecy imposed on the members of the ESM should not prevent the Bundestag from being kept fully informed on ESM decision-making processes.
During the Committee stage of the EU (Approval of Treaty Amendment Decision) Bill I referenced the anticipated
decision, stating that it related only to whether the ESM treaty and the fiscal compact are compatible with the German constitution—
The Government’s position on the ESM remains. The ESM alone will not solve the eurozone crisis, but will play an important role, providing the eurozone with a permanent financial assistance mechanism to assist eurozone member states in financial difficulty. And financial stability in the eurozone is crucial to our own economic recovery in the UK.