German Court Backs Bailout Fund

Well, this is a relief for Europe. Germany’s constitutional court on Wednesday struck down an attempt to block the permanent euro-zone rescue fund, but also placed caps on Germany’s contribution. Critics to Chancellor Angela Merkel–backed European Stability Mechanism have argued that it commits Germany to potentially unlimited bailouts of debt-ridden countries such as Italy and Spain. European shares rose on the ruling, and the euro gained in value, rising to a four-month high against the dollar.