Parliament panel can't decide bailouts: German court

KARLSRUHE: German top court said on Tuesday a parliamentary committee set up to approve urgent action by the euro zone bailout fund was "in large part" unconstitutional, in a ruling that may hamper Berlin's ability to tackle Europe's debt crisis.

The Constitutional Court verdict said the nine-member panel could approve the purchase of debt on the secondary market by the EFSF bailout fund, but it ruled against other powers including extending loans or preventative credit lines to troubled states and the recapitalisation of banks.