15.59 With less than an hour to go until the markets close, the FTSE 100 in London is currently down 0.3pc at 5,775.98, while the DAX in Frankfurt is up 0.44pc at 7,341.04, the IBEX 35 in Madrid is up 0.8pc at 7,991.60 and the FTSE Mib in Madrid has climbed 1pc to 16,930.96. 15.25 Open Europe examines the immediate impact of the German court ruling in a new blog post: [The ruling] makes topping up ESM more difficult: The current lending capacity of the ESM, €500bn, is not nearly enough to take, say, Italy and Spain off the market, meaning that the cap could prove a real obstacle for large-scale Eurozone bailouts down the line. However, the impact of this could be offset by last week's ECB decision to buy unlimited short-term government debt - via the OMT - which reduces reliance on the ESM. It is also worth considering that a situation where the ESM needed to be topped up, would mean the crisis had significantly worsened once again and an extra layer of parliamentary approval may be the least of the eurozone's worries. The decision also reinforces that any future ESM bailouts will require parliamentary approval, stating that the Bundestag "must individually approve every large-scale federal aid measure on the international or European Union level." Bundestag approval - either by the full chamber or a special committee - was already needed for activation of the ESM (as with the EFSF). The Court also called for both houses of the German Parliament - Bundestag and Bundesrat - to be kept fully informed of any ESM decisions, something which needs to be enshrined in "international law." 14.42 One non-eurozone state that could adopt the banking proposals is Denmark. The Scandinavian country, which is a member of the EU, will approve proposals to make the ECB the region's top bank supervisor - if certain conditions are met. The country's economy minister Margrethe Vestager, told Bloomberg that it wants guarantees that any bank oversight in Europe won't put its lenders at a competitive disadvantage, "regardless of whether Denmark is part of the supervision." If we, as a country outside the euro, are to join the supervision, it will have to be on equal terms, ensuring that we will also be in on deciding how to set up supervision. If a bank gets into troubles, other banks must support it. Taxpayers will not have to pay, as in the Danish model where banks stand up for each other. 14.18 Italian PM Mario Monti has described today's German constitutional court ruling as "excellent news," adding that the judgment "removed the last obstacle for the implementation of the European Stability Mechanism treaty and the fiscal compact treaty." Speaking in Rome, he added that the €190bn limit on Germany's share of the fund did not "represent an unpredictable brake in the process of stabilisation of the markets." 13.43 A BBC journalist asks if today's proposals mark the begininng of the end of London's status as the financial centre of Europe. Mr Barnier replies that he thinks and hopes that London's place will remain pre-eminent. "It's not just important for the UK but for Europe," he adds. Britain's position will be even stronger if the eurozone works well, he says, adding that for David Cameron and George Osborne, the UK's interests are for the eurozone to escape the crisis, and that it is strong and well managed. "I think that what we are suggesting is in the interests of the City," he adds, "We have gone far to organise dialogue between the EU and eurozone countries." 13.34 Mr Barnier is asked if any countries outside the eurozone expressed a wish to join. Mr Barnier says that it would not be "reasonable or prudent" to name countries, but adds that some are "seriously thinking about this possibility already" and insists that these countries will have access to all the information that those inside the euro club have. 13.30 Mr Barnier and his team did think about setting up a completely new body to supervise the banks, but decided to use the ECB's resources "to prevent more bureaucracy," He repeats that the ECB will be supported by national supervisors, "they will provide a network of expertise for the single supervisor," says Mr Barnier. 13.26 Mr Barnier also calls for a more stringent deposit protection scheme, with a clear "recovery and resolution framework." Creditors must also stump-up the cash when banks get into trouble, not just taxpayers, he says. 13.25 National supervisors will retain responsibility, especially with regards to the protection of consumers, says Mr Barnier. Those not in the euro area but in the EU may decide to join, says Mr Barnier, but for those who don't, supervision in these countries will not change at all. Michel Barnier gestures during a press conference on Wednesday (Photo: AFP). 13.21 Mr Barnier says that there will not be a dramatic change on January 1 next year, as the ECB would not be able to monitor all banks by then. This would not be "a serious approach" to take, he says. Mr Barnier adds that the supervisor "may go and look at certain aspects of a given bank which may pose a risk." The biggest banks will be monitored on a regular basis, he says, especially those that have received state aid. He hopes that a supervisor for all eurozone banks will be up and running by July 2014. 13.10 Mr Barnier says the proposals aim to monitor the sources of risk for member states. "We have to put in place a better and more efficient system to cover all banks in Europe," he says. This is very important because the banking issues raised by some become the issue of others because of the interconnectedness that can have a knock-on effect. We're not just talking about a technical issue, it's a political issue, he says. 13.05 Michel Barnier, the EU Commissioner responsible for internal market and services, will hold a press conference shortly on the banking supervision proposals outlined by Mr Barroso this morning. You can watch it live here. Michel Barnier (right) in the European Parliament today (Photo: Reuters). 12.38 Maria Fekter, Austria's finance minister, has described the ESM ruling and the ECB's bond buying plan as "milestones" for "stable crisis infrstructure." Ms Fekter told an Austrian press agency that the country would transfer its first €900m tranche to the permanent bail-out fund this autumn. 12.20 Wolfgang Schaeuble, Germany's finance minister, has welcomed EU proposals for banking supervision, but called for realism on its scope and implementation timeline. In a statement, he said that the ECB should focus on the supervision of "systemically-relevant banks for the time being" as it can't oversee 6,000 banks in Europe in the short term. On the ESM, he said that it could be operational "within a few weeks." 12.05 In Holland, politicians have been posing for those obligatory voting shots as Dutch citizens head to the polls. Once they've made their choice, voters post their ballot papers into what can only be described as a black wheelie bin: Cast your votes now: clockwise from top left, Mark Rutte, current PM and leader of the conservative-liberal People's Party, Geert Wilders, leader of the right-wing Party of Freedom; Socialist Party leader Emile Roemer; voters at a station in the Hague. 11.35 She adds that the eurozone's problems must be solved by individual members, and that steps to boost European competitiveness must also be taken. She rejects the idea of eurobonds - again, but says that she see talks on closer EU integration by December. Mrs Merkel also welcomes the EC's proposals, but says that the ECB cannot be expected to oversee all banks. She says: The supervision has to function qualitatively, so that it doesn't come into being and then it doesn't work. It has to be about the quality of supervision, not the quantity. 11.22 German Chancellor Angela Merkel has described the ruling as a "good day for Germany" and Europe (translation courtesy of Bloomberg). She tells parliament that the court ruling gives security to the Bundestag and German taxpayer. German Chancellor Merkel arrives for start of a session of Bundestag at the Reichstag in Berlin (Photo: Reuters). 11.11 Spanish prime minister Mariano Rajoy has again insisted that he will monitor the nation's borrowing costs before deciding whether to seek a full-scale rescue. Addressing parliament this morning, he said: I still don't know the conditions nor whether it is necessary for Spain to request it We will see how the risk premium develops and the financing differentials ahead. Spanish Prime Minister Mariano Rajoy answers a question during a parliamentary session in Madrid on Wednesday (Photo: Reuters). Meanwhile, deputy economy minister Fernando Jimenez Latorre told reporters that there was no urgency over Spain's decision because the country could now issue debt in "more comfortable" conditions. The important thing is that when whatever assistance that is needed is requested that it should be well received in the markets. 10.48 Following this morning's ruling, Jean-Claude Juncker, the head of the Eurogroup of finance ministers, has said that the ESM governing board will hold its inaugural meeting on October 8. In a statement, Mr Juncker said that each of the 17 eurozone members will have one representative on the board. I take note of the decision of the German Federal Constitutional Court concerning the request for a preliminary injunction concerning the ratification by the German government of the treaty establishing the European Stability Mechanism (ESM) and the treaty on Stability, Cooperation and Governance in the Economic and Monetary Union (TSCG). Taking full account of all elements of the ruling, I look forward to the completion of the outstanding procedures allowing for the Treaty Establishing the European Stability Mechanism to enter into force. I plan to convene the inaugural meeting of the ESM-Board of Governors in the margins of the Eurogroup meeting of 8 October in Luxembourg. The TSCG will enter into force once twelve euro area Member States have ratified it, but not earlier than 1 January 2013. Both treaties represent a major step forward towards closer fiscal and economic integration and stronger governance in the euro area. They are part of our comprehensive strategy to bolster the outlook for fiscal sustainability and growth in the euro area. 10.21 Spanish and Italian borrowing costs may have fallen this morning, but here's another reason why they shouldn't pop open the champagne bottles just yet. And here's Mr Barroso's speech in full.