German court rules debt deal legal but gives MPs more say

Germany's Constitutional Court has rejected an attempt to declare aid for Greece and other eurozone rescue packages illegal but said parliament must have greater say in any future bailout agreements.

Reuters/Thomas Peter

In a ruling eagerly awaited by financial markets, the court said all "large-scale" future aid packages must be approved by the parliament's budget committee.

In decisions that will probably limit Chancellor Angela Merkel's capacity to tackle new crises, it also ruled that parliament:

• Must have "sufficient influence" over the conditions attached to future rescue deals;
• May not approve deals that could lead to an unforeseeable burden on future parliaments.
• May not approve any deal that leads to a pooling of national debt, apparently ruling out the idea of "eurobonds."
   

Shares in Asia bounced sharply upwards on Wednesday as bargain-hunters

moved to take advantage of recent falls and traders pounced on a weakened yen.

Tokyo jumped 2.01 per cent to 8,763.41, Seoul soared 3.78 per cent to 1,833.46 and Shanghai closed 1.84 per cent tot 2,516.09,

Sydney added 2.65 per cent to 4,183.4, boosted by data showing an unexpected 1.2 per cent growth for the Australian economy in the June quarter with, reversing a contraction in the first