Ateneo Professor on Entrepreneurship
From Money News
Germany's constitutional court approved Germany's participation in ECB ESM (Eurozone Stability Mechanism). The veto rights granted to the FDR parliament was less onerous than anticipated. Therefore it is go for the 700 billion Euro stability fund that would seem to stabilize the 3 year old Euro problem. Germany is the only Euro country that has not ratified the ESM
The good news was met by high Euro rate vs the dollar and stocks prices increasing.
The complaints of some 37,000 Germans (democrats, German Chancellor lawmakers, and leftists elements) argued that sovereignity is being transferred from Germany to Brussel.
The court dismissed this as nonsense; however it imposed two conditions: l. That the exposure of FDR would be limited to only 190 billion Euros; and that 2, Bundestag (Lower German Parliament)
Bundesrat ( Upper house) would be informed comprehensively of activities of ESM (despite confidentiality rule of ECB)
Last week, Mario Draghi, president of ECB said it would be buying loans and papers of various European banks: l. to prop up liquidity, 2. to keep Eurozone intact
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