The European fiscal compact, a cherished project of Angela Merkel, and the ESM are still facing domestic opposition less than a day after passing through parliament.
On Saturday, plaintiffs such as the far-left opposition party Die Linke - the only party to oppose the plans in parliament - applied to the Federal Constitutional Court for injunctions to block the plans while judges consider whether they fall in line with German law. A decision could take a few weeks.
Peter Gauweiler, one of a few lawmakers in Merkel's center-right coalition who has consistently rejected emergency loan packages, also opposes the measures. He had lodged objections to previous rescue plans.
On Friday, Merkel rushed back to Berlin following EU summit talks in Brussels in order to address the legislative body before it closed for its summer recess.
She encouraged lawmakers to approve Europe's fiscal pact on budget discipline, as well as a permanent bailout fund, the ESM, which has a theoretical lending capacity of 500 billion euros ($633 billion).
"Today Germany, with the approval of the fiscal pact and the ESM by all parties in both houses of parliament, will send an important signal ... that we are overcoming the European debt crisis in a sustainable way," Merkel told the lower house, the Bundestag, on Friday.
First the lower house of parliament, the Bundestag, voted in favor of the two key policies. The Bundesrat, representing Germany's 16 states, also gave the green light several hours later.
Making concessions
During the two-day talks with other leaders from the EU in Brussels, Merkel remained steadfastly opposed to any moves to pool eurozone debt. She had to make some concessions, however, in order to adopt quick-fix solutions to address the crisis, such as allowing the ESM to give direct help to troubled eurozone banks; something she had previously opposed.
Merkel defended her change of heart and pointed out that any assistance from the ESM would come with strict conditions.
Others to follow suit
To date, 25 of the EU's 27 member states have agreed to the fiscal growth pact. Britain and the Czech Republic did not sign the agreement. Only a handful of parliaments have ratified the pact thus far, including Greece, Latvia, Slovenia, Sweden and Denmark. Under the terms of the fiscal deal, countries agree to keep their annual budget deficits within pre-existing EU targets - or face sanctions.
It is believed that Germany's approval of the measures will serve as a catalyst for quick ratification by other European legislative bodies.
Tm, mkg/msh (dpa, Reuters, AP)
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