Markets breathed a sigh of relief across the world after the Constitutional Court in Karlsruhe ruled that the European Stability Mechanism (ESM) and the EU’s Fiscal Compact are compatible with the country’s Basic Law. The euro surged to a four-month high of €1.29 to the dollar. “This is a good day for Germany and a good day for Europe,” said Chancellor Angela Merkel. “Germany is fulfilling its full responsibilities as the biggest economy and a trusted partner in Europe.” The European Parliament leapt to its feet in thunderous applause as the news came through, the verdict removing the final hurdle blocking deployment ... (full story)