German Pres Signs ESM/Fiscal Compact; Ratification Pending

FRANKFURT (MNI) – German President Joachim Gauck has signed the
European Stability and Mechanism and “fiscal compact” treaties, but for
the ESM to come into force the German government must still meet
conditions set by Germany’s Constitutional Court, a spokeswoman for
Gauck’s office said Thursday.

Gauck’s signature comes after the Constitutional Court on Wednesday
approved the two treaties, with the caveat that the government attach a
declaration that makes clear that Germany’s liabilities under the ESM
rescue fund are limited to E190 billion.

Gauck’s office said the government would have to complete this
declaration – as it has already indicated it will do – before the
president allows final ratification of the treaties.

Germany is one of the last major Eurozone member to ratify the ESM
treaty, which was approved by two-third majorities in Germany’s
parliament in late June. Gauck had said he would wait for the court
ruling before signing the treaties.

— Frankfurt bureau: +49 69 720 142; email: ccermak@mni-news.com —

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