Markets surge on bailout ruling
World stock markets surged yesterday after a German court ruled that eurozone bailout payments were legal.
In London, the FTSE 100 was up more than 3 per cent at 5,318.59, with banking and mining companies leading the rally.
Germany’s Constitutional Court rejected a series of lawsuits aimed at blocking German participation in bailout packages for Greece and other eurozone countries.
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Hide AdBut it said the government must seek the approval of the German parliament’s budget committee before granting such aid in future, a requirement which could further slow Europe’s response to the debt crisis.