Germany's top court gives go-ahead to ratification of EU recovery fund

Germany’s top court allowed the country to proceed with the ratification of the European Union’s €800bn pandemic recovery fund.

According to Bloomberg, the Federal Constitutional Court said on Wednesday that plaintiffs opposing the plan failed to show they were "likely to win" their challenge.

"The underlying case isn’t per se inadmissible or without merit,” the court said in a statement. "Based on a summary examination, however, it does not appear highly likely that the court will find a violation” of the constitution."

The green light followed a bid to block the program from political group Buendnis Buergerwille, which filed the lawsuit against on the grounds that Brussels shouldn’t be allowed to issue debt to finance the recovery program.

The lawsuit against the fund is still pending.

By treaty, the EU can only raise debt in capital markets if it first obtains the permission of all 27 member states.

The massive stimulus plan consists of grants and loans that will primarily be disbursed to the worst-hit EU nations.