German Court Rejects Blocking Permanent Euro Bailout Fund

Markets rally in response

Germany's highest court paved the way for the creation of Europe's €500 billion rescue fund after it rejected Wednesday calls to block it.

Investors breathed a sigh of relief that Federal Constitutional Court removed the threat that Germany would be prevented from ratifying the treaty setting up the European Stability Mechanism — a new, permanent €500 billion fund for the 17 countries that use the euro and a central part of efforts to contain the debt crisis