German court confirms euro zone bailout scheme is legal

Plaintiff Gregor Gysi, leading member of German left wing party Die Linke, waits in the courtroom of Germany's Constitutional Court ( Bundesverfassungsgericht ) for the verdict on the European Stability Mechanism (ESM) by the second senate in Karlsruhe, March 18, 2014. REUTERS/Kai Pfaffenbach

KARLSRUHE, Germany (Reuters) - Germany's Constitutional Court upheld the legality of the euro zone's bailout fund on Tuesday, affirming a preliminary ruling back during the debt crisis in 2012 that gave a green light to the European Stability Mechanism (ESM).

The court reiterated that the 700 billion euro ($975 billion) fund did not violate the rights of Germany's Bundestag, or lower house of parliament, to decide budgetary matters as long as it had sufficient oversight powers over the ESM.