September 24, 2012
This Wednesday, all 17 EMU countries will agree on an “interpretative declaration” that will be added to the ESM treaty. It aims to ensure that the ESM treaty is to be interpreted in line with the two conditions recently set by the German Constitutional Court, i.e. (1) no exceeding of the upper ceiling of national guarantees without prior parliamentary approval and (2) full information to national parliaments despite require-ments of professional secrecy and immunity.
The joint declaration paves the way for Germany’s ESM ratification, which is to be expected by the end of next week. Add another two weeks to pay in the first two tranches of the capital reserve (EUR 34 bn) and ESM should be fully operational by mid-October. One downer remains: the interpretative declaration is not legally binding – new constitutional complaints are most likely to follow soon.
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16.05.2013
