A top court in Germany has cleared the way for ratification of the European Union bailout fund.
The 8 judge Constitutional Court there has this morning given the European Stability Mechanism (ESM) the green light but has attached some conditions.
The court said any financial cost for Germany arising from the ESM must be strictly limited to its share of the capital of the fund or €190 billion.
If the costs were to be increased beyond that it could only be done with the approval of the German Parliament.
It is seen as a landmark ruling on the EU permanent rescue fund which can now be signed into law.
Several legal challenges in Germany have so far delayed ratification of the €500 billion programme.
The ESM will replace the European Financial Stability Facility (EFSF).
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