Last week’s ‘thunderbolt’ ruling on eurozone rescue policies by Germany’s top court marks
a serious escalation of Europe’s governance crisis and may ultimately
force Germany to withdraw from the euro, the country’s most influential
magazine has warned.
A
sweeping report by Der Spiegel said the court ruling amounts to a
full-blown showdown between Germany and the European Central Bank over
the methods to shore up southern Europe’s debt markets.
“It
is nothing less than a final reckoning with the crisis-management
strategy pursued by the ECB. The German justices insist that the German
constitution sets limits on the ECB’s crisis strategy. In a worst-case
scenario, the Court could forbid Berlin from contributing to efforts to
save the euro or even force Germany to leave the currency zone
entirely,” it said.
The
warning came as market analysts began to see the darker implications of
the ruling, which was initially seen as a green light for the ECB’s
bond operations.
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