DUBLIN/KARLSRUHE, Germany (Reuters) – A planned referendum in Ireland and a German court ruling cast new uncertainty on Tuesday over efforts to overcome the euro zone’s debt crisis, just when a flood of central bank money appeared to be calming financial markets.

Ireland’s prickly electorate, which has twice voted “No” to European Union treaties before reversing itself, will get another chance to keep Europe on tenterhooks with a referendum on a fiscal compact on budget discipline agreed last month.

KARLSRUHE, Germany (Reuters) – Chancellor Angela Merkel’s room for maneuver on future euro zone bailouts, in doubt after a revolt by coalition lawmakers, shrank further on Tuesday when Germany’s top court raised a hurdle to swift action in financial rescues.

The German constitutional court ruled that parliament may not delegate most decisions on disbursing bailout funds to a special committee meeting in secret, as Merkel had planned after a previous ruling bolstered lawmakers’ oversight powers.

KARLSRUHE, Germany, Feb 28 (Reuters) – Germany’s 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 means that either a full
session of the 620-strong Bundestag (lower house of parliament)
or its 41-member budget committee will have to be convened every
time a decision has to be made on the use of the bailout fund.

KARLSRUHE, Germany (Reuters) – Germany’s top court will decide on Tuesday whether a small parliamentary sub-committee can approve future aid to ailing euro zone countries such as Greece, in a ruling that could hamper Berlin’s ability to act swiftly in the debt crisis.

The Constitutional Court in Karlsruhe will rule at about 0900 GMT on a case brought by two opposition MPs who say that giving the nine-person special committee such influence infringes on the rights of German lawmakers.

KARLSRUHE, Germany, Feb 28 (Reuters) – Germany’s
Constitutional Court will rule on Tuesday whether a small
sub-committee in parliament is representative enough to take
decisions over whether the country should grant help to heavily
indebted euro zone countries such as Greece in future.

The court in Karlsruhe will rule at about 0800 GMT on a case
brought by two opposition MPs who say that giving a nine-person
special committee such influence infringes on the rights of
German lawmakers.

FRANKFURT, Feb 27 (Reuters) – The euro zone avoided a
credit crunch in January but banks showed scant sign of lending
on the funds they snapped up at the European Central Bank’s
first 3-year lending operation to companies which have been
starved of investment funds.

The monthly flow of loans to firms stabilised in January,
declining by just 1 billion euros after falling 35 billion euros
in December – the fastest drop on record – ECB data showed on
Monday.

FRANKFURT (Reuters) – The European Central Bank’s decision to exempt itself from taking losses on its Greek bonds gives its senior status in the bond market and may push up borrowing costs of other debt-strained euro zone countries, Standard & Poor’s said on Friday.

The ECB and the 17 euro zone central banks made cosmetic changes to the 62 billion euros worth of bonds they own this week to avoid being pulled into Greece’s debt reduction deal, which will see private investors lose well over half their money.

FRANKFURT, Feb 24 (Reuters) – European companies, fed
up with scant lending from tight-fisted banks, are turning to
new sources of financing, including preparing to tap the
European Central Bank’s low-interest loan programme directly.

Some are issuing the first corporate bonds in their history.
But those with financial arms — particularly carmakers — are
gearing up to skirt the banks and go straight to source.

FRANKFURT (Reuters) – The European Central Bank held interest rates at a record low on Thursday, seeing tentative signs of economic stabilization, but refused to say what part it might play in averting a ruinous Greek default.

After days of delay, Greek political leaders clinched a deal on austerity measures needed to secure a bailout to keep the country afloat.

FRANKFURT, Feb 1 (Reuters) – A quarter of euro zone
banks expect to make it harder for firms to get loans in the
future, the European Central Bank said on Wednesday, although
the bank’s recent massive cash injection has eased the chance of
a full-blown credit crunch.

With the sovereign debt crisis wreaking havoc across the
common currency bloc, analysts have feared that banks might turn
off the credit taps, causing further damage to the economy, and
the ECB’s latest quarterly Bank Lending Survey indicates the
threat is real.