Clever ruling

It was no mean feat, but the judges at Germany's constitutional court pulled it off. They managed to give back rights to the German parliament that had threatened to be undermined in the wake of the eurozone rescue mission - without jeopardizing the rescue mission itself.

Strictly speaking, the court should have thrown out the law on the European Stability Mechanism (ESM), the law that allows Germany to agree to grant extensive financial aid to highly indebted eurozone countries, as it violates the German constitution by stripping parliament of its right to govern spending.

That right is - and rightly so - widely regarded as the key right of parliament. However, the ESM law simply obliges the government to "make efforts" to come to an agreement with the parliamentary budget committee, before giving the green light to fresh aid for struggling member states. So, if push comes to shove, it means the government can push through aid without parliamentary approval.

A little trick

Although the law is, strictly speaking, illegal, had the constitutional court thrown it out it would have jeopardized the ongoing efforts to avert a eurozone crisis - with unpredictable consequences.

So, the judges had a trick up their red-robed sleeves: They ruled that the law is in line with the constitution, while at the same time forcing the government to interpret the text of the ruling in a way that does not allow it to issue new guarantees without parliamentary approval.

In a way, the court's decision preempts a debate in parliament, which starts Thursday and is aimed at passing a bill that would necessitate parliamentary approval for any future bailout package.

And it's likely to become law as lawmakers are increasingly worried about parliament's dwindling power. Germany's highest judges have confirmed and encouraged those concerns.

On top of that, their ruling also ensures that parliament does not lose its power in the future. It's a clear victory for democracy.

Author: Peter Stützle / ng
Editor: Martin Kuebler