German Court Approves Rescue Fund

KARLSRUHE, Germany—Germany's highest court on Wednesday cautiously approved the creation of the euro zone's permanent bailout facility, but insisted that the country keep its effective veto on all of the vehicle's decisions, a ruling that removes a question mark over two crucial elements of the euro zone's plans for mastering its debt crisis.

The ruling was broadly supportive of the German government's current line and added no new major conditions to the Treaty, concentrating instead on giving the full weight of law to existing policy positions.

It should ensure that the European Stability Mechanism comes into force within a month, ...

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