CNN is delving into the economic issues facing the United States this week. Today, a big decision from a court in Germany could affect the U.S. economy. U.S. stock futures and European markets are already up due to the court ruling. Christine Romans is minding your business with more on the decision.
Romans says the German court has ruled that “the permanent bailout fund for the European Union is constitutional, but with a catch. Any increases in Germany’s financial exposure to the fund needs to first be approved by the German Parliament.”
Romans says it comes down to the ESM, the European Stability Mechanism. “It’s the $500 billion Euro permanent rescue fund for the European Union nations,” Roman explains. “If the German court had ruled this fund was unconstitutional, we’d see turmoil in the markets.” Romans adds that this ruling critical to the U.S. economy because that the European Union is America’s top trading partner, importing $400 billion of American goods every year. “We have more than a trillion dollars in direct investments in the E.U. And $2.7 in loans and other financial commitments to European government banks and companies.”