I don’t think that this is what those people who are trying to save the euro zone as it is wanted to hear from the German constitutional court. What is needed is a financial ‘bazooka’, which means a precisely unlimited source of funds to spend on buying up sovereign bonds to get the yield down to where it is wanted. The ESM cannot fulfill that role if its spending is limited. Bazooka Fail.
Which leaves us with what we already know: the euro with its central bank and stability and growth pact and without any kind of fiscal arrangement and/or lender of last resort function for the ECB was a really, really bad idea. If the ruling stands like I perceive it to stand, the last option is to turn the ECB into a lender of last resort – directly or indirectly.
UPDATE: I was mistaken in the above post. The ESM will be working just fine as it is, with the ECB providing the unlimited firepower. My bad! Thanks to various people pointing that out. (Perhaps I was to eager to show off that Youtube video?)