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27 November 2012

Reuters: EU's top court rules ESM fund compatible with EU law


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The European Union's highest court ruled on Tuesday that the eurozone's permanent bailout fund, the European Stability Mechanism (ESM), was in line with European law, despite a challenge by an Irish lawmaker.


The Irish court asked the European Court of Justice (ECJ) for clarity on the matter when it rejected an attempt earlier this year to force a referendum on Ireland's ratification of the bailout fund.

Ireland does not have a veto over the ESM treaty, which took effect in October after approval by 90 per cent of the eurozone capital base, giving the fund a lending capacity that will total €500 billion. The rescue mechanism for the 17 eurozone countries is to be used to lend to distressed sovereigns in return for strict fiscal and structural reforms.

Full article



© Reuters


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