German court backs euro rescue fund

Germany's high court has rejected calls to block the Europe's permanent rescue fund - paving the way for its ratification by the country's president.

The Federal Constitutional Court on Wednesday rejected requests for an injunction blocking ratification of the European Stability Mechanism - a new, permanent $638.8 billion bailout fund for the 17 countries that use the euro.

The taxpayer-backed fund is crucial to fighting the eurozone's debt crisis because it can loan money to governments that can't borrow otherwise. The fund cannot work without Germany's participation.

It was not immediately clear when the country's president would sign the measure, which was already approved by Parliament.