German Chancellor Angela Merkel Germany's constitutional court will decide on 12 September whether the European Stability Mechanism (ESM), the new permanent bailout fund for struggling eurozone countries, is legal. The court must rule on German plaintiffs' claim that legislation to establish the ESM would violate Germany's basic law. If the court rules in the plaintiffs' favour, it will ask the president, Joachim Gauck, not to sign the treaty. Meanwhile, a debate on holding a referendum in Germany on the future of the EU emerges. The German government said on Monday it remains convinced that the euro zone's new bailout fund is compatible with the country's constitution despite a new complaint filed by a German lawmaker.