Sept 7, 2011
LONDON – A highly anticipated ruling by Germany’s Constitutional Court on Wednesday both helped and hurt Chancellor Angela Merkel’s battle to shore up the euro. The powerful panel of judges declared that bailouts to troubled nations were legal but also ordered that future rescues involving Germany must first be approved by a parliamentary panel.
Analysts and markets appeared to breathe an immediate sigh of relief. The German DAX was up 3.5 percent in afternoon trading there; London’s FTSE index rose 2.3 percent, and France’s CAC was up 2.6 percent.
In the United States, stocks opened on the upswing: The Dow Jones Industrial Average rose 1.3 percent; Standard & Poors was up 1.5 percent; and the tech-heavy Nasdaq was up 1.7 percent.
In the worst-case scenario, the ruling could have upended attempts to stem Europe’s debt crisis through multibillion-dollar bailouts. The largest economy in the 17-nation euro zone, Germany has become increasingly hesitant about its role in the bailouts as angry taxpayers have been forced to bear the highest burden of the rescues.
This article was posted: Wednesday, September 7, 2011 at 8:20 am