BERLIN, Sept. 12 (Xinhua) -- An earlier verdict of the Federal Constitutional Court to back the European Stability Mechanism (ESM) sent a strong signal to Europe, German Chancellor Angela Merkel said on Wednesday.
"This is a good day for Germany. This is a good day for Europe," said Merkel in front of lawmakers.
"Germany sent today again a strong signal to Europe and beyond that it will decisively shoulder its responsibility as Europe's biggest economy and a reliable partner," she said.
Earlier Wednesday, the Constitutional Court in Karlsruhe rejected demand from about 38,000 plaintiffs to issue a temporary injunction to prevent President Joachim Gauck from signing the treaty establishing the ESM into law.
The decision cleared the way for Germany to ratify the long-awaited 500-billion-euro (644-billion-U.S. dollar) permanent bailout fund.
"Trust in eurozone was shattered. It must be won back in a difficult process," said Merkel, adding that "the economic and monetary union should be further developed in Europe."
The court ruled that the fiscal pact, a treaty aimed at strengthening budget discipline in Europe but opposed by plaintiffs in Germany, "does not grant the bodies of European Union powers which affect the overall budgetary responsibility of the German Bundestag."
"In EU financial crisis, problem should be solved from the root. Now it's important to fundamentally improve the competitiveness," said Merkel.