Germany, already one of the most desired countries for refuges may face a tough challenge in financing additional social benefits for people seeking for asylum. The Constitutional Court ruled that the benefits refugees are entitled now are far too low, forcing the German government to draft a new law with significantly higher payments to be financed by the taxpayer.
In an analysis, Citi concludes that the current legal framework for the ESM does not offer special protection for taxpayers as suggested to the German parliament ahead of last week's vote. The subordination clause would trigger the CDS, why such a protection is legally not possible without blowing up the system. German politics finds itself under scrutiny over not telling parliament the truth.