German court to rule on bailout committee in 2012

KARLSRUHE, Germany (Reuters) - Germany's Constitutional Court said it will not rule before late January or early February on whether a special new parliamentary committee, set up to meet in secret to consider urgent action by the euro zone bailout fund, infringes lawmakers' rights.

The court, which initially said it may rule by the end of this year, suspended the committee in October while it considered a case brought by two opposition members of parliament, who say the nine-person special group infringed lawmakers' rights.

Finance Minister Wolfgang Schaeuble urged the court during a hearing last month to allow the committee to function, saying the ability of the European Financial Stability Facility (EFSF) to make a decision must not be rendered impossible.

In some situations, such as any planned purchases of state bonds on the secondary market, confidentiality was a pre-condition for the EFSF to act, he said.

The committee is intended to represent the larger parliamentary budget committee when speedy approval of planned EFSF action is needed. So far the court case and suspension has not led to any disruption as the EFSF has not been used in that time.

Plaintiffs Swen Schulz and Peter Danckert, both Social Democrats, argue the use of the special committee breaches the constitution as it transfers powers from a full session of the Bundestag lower house on a matter pertaining to the budget.

Court President Andreas Vosskuhle has said the court would be guided by constitutional law although practical constraints would be taken into consideration.

(Reporting by Diana Niedernhoefer; editing by Stephen Nisbet)