Wolfgang Münchau says Constitutional Court a disaster for the eurozone

In his column in the Financial Times, Wolfgang Munchau says there are only two solutions to the eurozone crisis - a debt monetisation, or a Eurobond. The first is illegal under European law, the second is now illegal under German constitutional law. The Constitutional Court's decision delineates what is legal and what is not. A temporary mechanism in which the Bundestag retains ultimate control, such as the EFSF, is legal. The permanent mechanism is clearly a borderline case, according to the judgement, as a result of which the ESM is likely to give rise to another, and possibly more serious challenge. A eurobond is clearly beyond what the constitution permits, because it involves a permanent transfer of fiscal sovereignty.