The decision of the German constitutional court and the result of the Dutch election may help.
Let us hope that next Wednesday the German Constitutional Court protects national sovereignty.
The German Constitutional Court had just given the green light for the ESM - the eurozone's permanent bailout fund - to go ahead.
Precious metals prices got an early lift Wednesday as the German Constitutional Court rejected arguments to delay the implementation of the European Stability Mechanism.
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In September, though, they will see the ECB probably unveil its bond-buying plan and a German constitutional court rule on the ESM emergency mechanism.
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She needs this legal backing to satisfy the German Constitutional Court.
In overnight news, European stock markets were stable and quiet ahead of the FOMC meeting and a German constitutional court ruling Wednesday on the validity of the European Stability Mechanism.
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In the meantime there are some very positive signs: The decision of the German Constitutional Court to approve the ratification of the ESM treaty with only minor conditions was one of them.
During election years, volatility has been high in September, as I discussed Friday, and the ECB plan still faces some hurdles with the ruling from the German constitutional court due on Wednesday.
The German constitutional court ruled two decades ago that the Maastricht treaty was acceptable only if its no bail-out provisions were respected so any bail-out would have to be disguised to avoid legal challenges.
In late July of 2012, borrowing costs for Spain and Italy had reached record heights, while the German Constitutional Court was weighing the constitutionality of the European Stability Mechanism under German law.
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And the new European Stability Mechanism (ESM), designed to be more effective and flexible, is held up by a challenge in the German constitutional court, which is due to issue its verdict next month.
At the same time, a German Constitutional Court will be ruling on the legality of the ESM emergency mechanism in Europe, while the Eurogroup summit of Finance Minister is scheduled for the 14 in Cyprus.
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On most days, investment professionals come to work and first check to see what the Federal Reserve, European Central Bank, Bundestag, German Constitutional Court, Bank of Japan, Bank of England or Bank of China did overnight.
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Certainly experience from abroad does not suggest that state funding is a panacea: the German constitutional court, fearing that parties were becoming over-dependent on public funds, ruled in 1992 that state funding for politics should be reduced.
Even this was a bit much for Germany, where bailing out fiscally intemperate neighbors, Mediterranean or otherwise, is deeply unpopular and the German Constitutional Court has threatened to derail any bailout mechanism that smells permanent and automatic.
Moreover, the latest developments in the eurozone with respect to some unlimited bonds purchases by the European Central Bank, the blueprint of a banking union there and the ratification of the European Stability Mechanism, or ESM, by the German Constitutional Court have effectively diminished short term risks, all of which benefited the peso.
Global markets breathed a collective sigh of relief on Wednesday as a constitutional court gathered in the German city of Karlsruhe rejected complaints against the ESM and the fiscal pact, calling them unfounded.
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The German Chancellor, Angela Merkel, said that "the constitutional court backed us completely".
There is growing resistance in Germany to taking on more liability for the southern countries and some politicians have turned to the Constitutional Court to judge whether the ESM, the planned permanent bailout fund, violates German law.
German standoffishness toward the EU is now based in law: a 2009 ruling by Germany's Constitutional Court allowed it to ratify the Lisbon treaty but limited further transfers of power to Brussels.
If the Constitutional Court allows it, this would be the first time in nearly half a century that any German party has been banned.
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