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If you are following the debt crisis in Europe as I am, you need to read this CNN Money article: http://money.cnn.com/2012/09/12/investing/germany-esm/index.html

I have copied a few excerpts to ‘wet your whistle’:

NEW YORK (CNNMoney) — Europe’s latest rescue fund cleared a major hurdle Wednesday after a high court in Germany refused a request to block its ratification.

The German Constitutional Court ruled against a group of conservative politicians who requested an injunction that would bar Germany from ratifying the treaty governing the European Stability Mechanism.

The ESM board of governors will hold their first meeting on October 8, according to a statement from Eurogroup president Jean-Claude Juncker.

German Chancellor Angela Merkel welcomed the court’s decision, saying “it is a good day for Germany, it is a good day for Europe.”

The court’s decision is preliminary, with a final ruling on the legality of the ESM treaty expected later this year. But analysts say the court’s president has made it clear that the final ruling will not deviate from Wednesday’s announcement.

“Germany cannot allow the ESM to leverage itself up so that the potential German maximum liability could exceed the cap,”

Meanwhile, the court also supported the so-called fiscal compact that German Chancellor Angela Merkel and most other EU leaders signed in March.

The fiscal compact will become binding after 12 of the 17 euro area nations have ratified the treaty, according to Juncker. But it will not enter into force before January 1, 2013, he added.

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