While upholding the aid to Greece and a euro rescue package, the German Constitutional Court has concluded that for future financial guarantees the Federal Government should obtain prior approval from the German Parliament.
On September 7, the Court rejected three constitutional complaints directed against German and European legal instruments and other measures in connection with the aid to Greece and with a euro rescue package.
The Court decided that by adopting these Acts, the German Parliament did not impair in a constitutionally impermissible manner its right to adopt the budget and control its implementation by the Government or the budget autonomy of future Parliaments.
However, the Court also noted that § 1.4 of the German Euro Stabilization Mechanism Act merely obliges the Federal Government to strive to reach an agreement with the Parliament’s Budget Committee before giving guarantees. This is not sufficient, so the Court concluded; instead, guaranteeing parliamentary budget autonomy requires an interpretation to the effect that the Federal Government is in principle obliged to always obtain prior approval by the Budget Committee before giving guarantees.
