Eurozone rescue endangered

Sept. 10, 2012 at 12:02 PM
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KARLSRUHE, Germany, Sept. 10 (UPI) -- Market analysts in Europe are saying there will be two close calls this week on potential eurozone rescue plan derailments.

In Germany this week, a constitutional court in Karlsruhe could rule it is against the law for the government to contribute to the eurozone rescue fund.

The New York Times reported Monday many believe the court will not block Germany from participation in the fund. However, if it did, it would be disastrous for the fund in which Germany is slated to be the largest contributor.

In recent weeks, German Chancellor Angela Merkel has softened her tone in speaking of Greek efforts to comply with terms of their international bailout loan, naming the goal of keeping Greece in the eurozone a top priority.

Germany's clout, however, could be undermined by voters in the Netherlands who could throw their support behind anti-eurozone politicians in an election this week.

"We believe that a coalition of euro supportive parties is the most likely outcome, but it is a close call," said analysts at Credit Suisse in a research note, referring to the vote on Wednesday, the same day a ruling on the constitutionality of eurozone funding is expected in Germany.

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