I think this could be significant. But, I have no idea about German constitutional law, so this will have to remain a mystery to me. The ruling is expected to be made in September. Something to be aware of though, another brick in the wall of worry the market took a flying leap over last week.
(Reuters) – Germany’s top court began hearing legal challenges on Tuesday against last year’s bailouts of debt-stricken euro zone peers in a move that could affect Berlin’s room for maneuver in future rescue packages.
The Karlsruhe-based Federal Constitutional Court is unlikely to block Germany’s contributions to bailouts, but legal experts expect it will probably set conditions for approving fresh aid under a permanent rescue scheme.
EDIT: I’m adding this about 24 hours after I posted the above, rather than doing a new post. Its a link to an article by Evans-Pritchard in the English newspaper, The Telegraph. h/t to Naked Capitalism.
The article has better background and information about the case.
More EDIT: Added 31Aug2011
The Karlsruhe-based Federal Constitutional Court will announce its verdict on September 7 at 4 a.m. EDT.