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Germany's highest court issued an important decision this morning, ruling that the country can support an important bailout fund that is designed to help ease the crisis in Europe.
The conditions the court placed on Germany's participation were also less onerous than many had feared. The Euro and European markets reacted positively to the ruling, with the Euro rising to a four-month high against the dollar.
Pawel Swidlicki, a research analyst at a think-tank called Open Europe, said the ruling was largely what he expected.
Importantly, however, Swidlicki does not think the ruling--or the bailout or recent moves by European Central Bank head Mario Draghi--will mean that the Europe situation is solved. Rather, Swidlicki says, the fundamental problem of having a single currency with countries of varying competitiveness will remain, and political issues will hinder the full fiscal integration necessary for Europe to operate as a unified whole.
On a positive note, Swidlicki is not expecting a sudden crisis. Rather, he thinks Europe will continue to muddle through.
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