BUSINESS
07/16/2012 04:20 EDT | Updated 09/14/2012 05:12 EDT

German to decide in September whether to delay country's passage of ESM, fiscal compact

BERLIN - Germany's highest court says it will decide in September whether to issue a temporary injunction that would delay the country's ratification of Europe's new permanent bailout fund and budget discipline pact.

The Federal constitutional Court will determine whether the two measures are constitutional. It said in a release Monday it would announce Sept. 12 whether it will issue the injunction.

Parliament endorsed both the permanent bailout fund, called the European Stability Mechanism, and the fiscal compact on June 29. But President Joachim Gauck has held off signing them into law after complaints were filed with the court.

The government has argued that the court should not delay the passage of the measures, saying any postponement would lead to market turmoil.