by Francesco Guarascio

04 September 2012

The next crucial date in the calendar for the future of Europe is set for the September 12 when the Germans will give their final response on the legality of the eurozone rescue fund, the Dutch people will vote for a new government and the European Commission is expected to unveil plans for a banking union, reports

In recent months calendars have been filled with special dates, ultimate deadlines, make or break summits and top-level meetings – each presented as being decisive for the eurozone crisis. Each failed to deliver a lasting solution to the ongoing economic and financial turmoil. Therefore, expectations should not be high for the next special date – which by a pure coincidence of events will be September 12. Yet it would also be unwise to underestimate the importance of the outcomes of this ‘Special 12’.

Perhaps, the most important decision will come from Germany. This should not be surprising as Berlin has gradually become the undisputed, yet not always impartial, arbiter of all important European decisions in the last few years. On September 12, the German Constitutional Court will deliver a long-awaited ruling over the legitimacy of the eurozone’s permanent rescue fund – known as the European Stability Mechanism. The green light from Germany’s top court is crucial to putting the fund in place, since the country will be the main contributor to the common pot. The ESM will replace the existing European Financial Stability Facility, boosting the size of the eurozone’s financial firewall to €700 billion.

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