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Stability Pact before constitutional courts: The decision of the German Federal Constitutional Court of 12 September 2012

Abstract

By its decision of 12 September 2012, the German Federal Constitutional Court removes the obstacles that the Fondamentale Law could raise to the ratification of the Treaty establishing the European Stability Mechanism (TIMES) and the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (TSCG). She stated that six actions were unfounded which challenged, through a breach of the Bundestag’s budgetary responsibility, a breach of the democratic principle, which is part of the German constitutional identity. In order to do so, it limits the scope of new contractual obligations, expressly limits the extent of the German financial commitment by means of a reservation of interpretation and imposes, by means of a new interpretation reservation, the continuous information and involvement of national bodies in the administration of the new institutions established. Thus protected and strengthened in its functions in a democratic State governed by the rule of law, the German legislature is simultaneously subject to strict supervision.

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