Clifford Chance
German Federal Constitutional Court enables Germany to ratify ESM Treaty
18 September 2012
On 12 September 2012, the German Federal Constitutional Court (Bundesverfassungsgericht) rejected temporary injunctions to prevent the ratification of the Treaty on the European Stability Mechanism ("ESM"), the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (the "Fiscal Compact") and amendments to the Treaty on the Functioning of the European Union ("TFEU").
However, the Federal Constitutional Court has reinforced again the position of the German Federal Parliament (Bundestag) vis-à-vis the German Federal Government (Bundesregierung) in matters of European monetary and economic integration and set out limitations on the transfer of powers to the EU by the Federal Republic of Germany.
