RESCUE FUND STANDS: Germany’s highest court paved the way Wednesday for the creation of Europe’s €500 billion ($640 billion) rescue fund for indebted governments.
THE DETAILS: The Federal Constitutional Court rejected a call that would have blocked formation of the European Stability Mechanism bailout fund that leaders of the 17 countries that use the euro hope will help calm the debt crisis that threatens the eurozone and the global economy.
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THE OUTLOOK: The decision means the eurozone governments finally have two robust financial defenses against the debt crisis in place. The bailout fund will takes its place alongside plans by the European Central Bank to buy unlimited amounts of short-term government bonds issued by troubled countries.
