ESM case reaches EU’s highest court

<p>A case concerning the lawfulness of the ESM has reached the EU’s highest court.</p>

The German Dax and French Cac 40 opened higher this morning (October 23rd) ahead of a hearing concerning the legality of the European Union's (EU) permanent bailout fund.

Independent member of the Irish parliament Thomas Pringle brought the case to the highest court in the EU, the Luxembourg-based EU Court of Justice, in a bid to have the European Stability Mechanism (ESM) banned in its current form.

The court will have to decide whether or not the ESM contravenes EU law, as Mr Pringle states the firewall encroaches on the EU's role both in economic and monetary policy.

As such, the lawfulness of the ESM, which was declared operational on October 8th 2012, is being treated as a fast-track case, to ensure a ruling is delivered by the end of the year.

At market open this morning, the Frankfurt Dax was higher by 0.2 per cent to an index value of 7343.1 points and Paris's Cac 40 gained 0.2 per cent to 3490.3 points.

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