Germany's Constitutional Court has given the green-light for the European Stability Mechanism (ESM) to be signed into law.

In a much anticipated decision, the Constitutional Court approved the legality of Germany's contribution to the bailout fund, enabling the country's President Joachim Gauck to sign the legislation into law.

The ESM will hold €700 billion in emergency funds to support its troubled members and as the richest euro zone member, Germany will be the main contributor to the fund.

RA