The Irish Times reports that Germany's highest court has resisted political pressure to deliver a swift ruling on the ratification of the European stability mechanism (ESM), despite German finance minister Wolfgang Schäuble warning of delays causing "negative economic consequences".
According to the paper, the court is responding to complaints against the ESM and fiscal treaty and must wait to sign the bills into law until it has investigated their constitutionality.
Deutsche Welle says Schäuble appeared in person at the court in Karlsruhe to defend the ESM, saying that Germany would hold less of the joint liability for other member states' debts under the new system.
The ESM was originally intended to take effect from July 1 and the fiscal pact in January 2013, but the court's decision will push that schedule back, with months expected to pass before a decision is reached on the constitutional issues, reports the paper.
According to the Washington Post, the fund will only become operational once 90 per cent of the fund's capital commitments have been secured. Germany will provide 27 per cent of the total, so the fund cannot be activated without Berlin's support.
Meanwhile, European internal market and services commissioner Michel Barnier said that he hopes for a vote on the EU' bank recovery and resolution directive within the year, the Wall Street Journal reports.
In a press conference following the meeting of finance ministers in Brussels, Barnier said that the crucial directive would enable failed banks across the EU to wind down in an orderly manner to avoid burdening taxpayers, the paper says.
The draft proposals are one of three financial directives aimed at reducing the risks to society from the financial sector.
Source: The Parliament.com