GERMANY: Frankfurt trader calls German court ruling a 'yes, but' decision and says a limit to the ESM must now be ensured

Record ID: 752097

  • Title: GERMANY: Frankfurt trader calls German court ruling a 'yes, but' decision and says a limit to the ESM must now be ensured
  • Date: 13th September 2012
  • Summary: FRANKFURT, GERMANY (SEPTEMBER 12, 2012) (REUTERS) WIDE OF DAX BOARD CLOSE OF DAX SIGN ON BOARD TRADING ROOM TRADER WORKING CLOSE OF DAX GRAPH MORE OF TRADERS LOOKING AT COMPUTER SCREENS DAX BOARD SHOWING CHANGES CLOSE OF TRADERS DAX BOARD SHOWING CHANGES TRADER DAX BOARD TRADER WATCHING CONSTITUTIONAL COURT VERDICT ON EURO ZONE'S BAILOUT FUND (SOUNDBITE) (German) OLIVER ROTH, TRADER FOR CLOSE BROTHERS SEYDLER BANK, SAYING: "For the markets it means that they had already counted on this verdict, it's a yes, but. It must now be ensured that there is a limit to the ESM which must be controlled by parliament. There will be corrections to it and I believe there will be a delay to the ESM because corrections are needed. But overall, markets are very content with this result. But whether taxpayers are content is another question." TRADERS BEING INTERVIEWED (SOUNDBITE) (German) OLIVER ROTH, TRADER FOR CLOSE BROTHERS SEYDLER BANK, SAYING: "The ECB's decision to buy bonds can now take effect in an unlimited quantity. This gives enough time to politicians to make clear decisions for more Europe and more democracy, especially for the European institutions. Clear decisions are now needed and politicians have a timeframe which should be large enough to reach clear decisions." TRADER LOOKING AT MONITORS (SOUNDBITE) (German) OLIVER ROTH, TRADER FOR CLOSE BROTHERS SEYDLER BANK, SAYING: "The crisis is not under control. Rather, enough time has been created for the politicians to do their homework, that is: where do we want to take Europe, should it be more Europe, should there be more euro or should there be less. Clear decisions are needed, the democratisation of the European Union needs to be addressed. If more sovereignty rights must be handed to Brussels it's a huge task politicians now need to address." TRADING FLOOR CLOSE OF DAX GRAPH TRADER LOOKING AT COMPUTER SCREENS CLOSE OF TRADER'S HANDS PAN OVER DAX BOARD WIDE OF TRADING FLOOR
  • Embargoed: 28th September 2012 13:00
  • Keywords:
  • Location: Germany
  • Country: Germany
  • Topics: Economy
  • Reuters ID: LVABU0AYRJ4LCH3KFEQ7KIS6XXCK
  • Story Text: European shares climbed to their highest in nearly 14 months on Wednesday (September 12) after Germany's Constitutional Court rejected complaints against the euro zone's new bailout fund and allowed its ratification under certain conditions.
    The court said Germany could ratify the European Stability Mechanism and budget pact as long as it could guarantee there would be no increase in German financial exposure to the bailout fund without parliament's approval.

    "For the markets it means that they had already counted on this verdict, it's a yes, but. It must now be ensured that there is a limit to the ESM, which must be controlled by parliament. There will be corrections to it and I believe there will be a delay to the ESM because corrections are needed. But overall, markets are very content with this result. But whether taxpayers are content is another question," Oliver Roth, trader for Close Brothers Seydler Bank, told Reuters TV after the court's decision.
    Approval of the ESM is a vital part of a European Central Bank plan to defuse the euro zone debt crisis by buying struggling peripheral countries' bonds in the secondary market.

    "The ECB's decision to buy bonds can now take effect in an unlimited quantity. This gives enough time to politicians to make clear decisions for more Europe and more democracy, especially for the European institutions. Clear decisions are now needed and politicians have a timeframe which should be large enough to reach clear decisions, " said Roth, adding that the crisis was not under control yet.

    "Rather, enough time has been created for the politicians to do their homework, that is: where do we want to take Europe, should it be more Europe, should there be more euro or should there be less. Clear decisions are needed, the democratisation of the European Union needs to be addressed. If more sovereignty rights must be handed to Brussels it's a huge task politicians now need to address."
    Germany's DAX was up 0.9 percent, Spain's IBEX rose 1.3 percent and Italy's FTSE MIB gained 0.9 percent.
  • Copyright Holder: REUTERS
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