German Court Backs Bailout Fund

    German Chancellor Angela Merkel attends the the first session of the budget 2013 debate at the parliament Bundestag in Berlin, Germany, Tuesday, Sept. 11, 2012. On Wednesday Merkel and her government face a rule of Germany's Federal Constitutional Court about the legitimacy of the European Stability Mechanism and the  Fiscal Compact for Germany. (AP Photo/Markus Schreiber)

    Markus Schreiber / AP Photo

    Well, this is a relief for Europe. Germany’s constitutional court on Wednesday struck down an attempt to block the permanent euro-zone rescue fund, but also placed caps on Germany’s contribution. Critics to Chancellor Angela Merkel–backed European Stability Mechanism have argued that it commits Germany to potentially unlimited bailouts of debt-ridden countries such as Italy and Spain. European shares rose on the ruling, and the euro gained in value, rising to a four-month high against the dollar.

    Read it at BBC News