Germany's top constitutional court rejected efforts to block apermanent euro-area rescue fund, handing a victory to ChancellorAngela Merkel, who championed the 500 billion-euro ($646 billion)bailout.

The Federal Constitutional Court in Karlsruhe dismissed motionsthat sought to block the European Stability Mechanism, while rulingGermany's 190 billion-euro contribution can't be increased withoutlegislative approval. The court said Germany can ratify the ESM ifit includes binding caveats it won't be forced to assume higherliabilities without its consent.

“We are an important step closer to our goal of stabilizing theeuro,” German Economy Minister and Vice Chancellor Philipp Roeslertold reporters in Berlin after the ruling today. “It has alwaysbeen the goal of this government” to establish a “clear limit andto include parliament in all important decisions.”