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The writing is on the wall! With Weidermann's  Bundesbank opening battle lines against Draghi's ECB its now clear that further state bail-outs, debt  naturalization and fiscal transfers are off the menu. Spain and other debtor EMU nations are obviously being lined up for the ultimate solution; a Cyprus style write-down of private bank deposits. Watch the Spanish Euro denominated money supply collapse as funds deluge northwards  into Deutche Euros and Sterling, the latter possibly becoming an alternative currency for individuals and business fleeing from monetary persecution and financial ruin.  Germany’s constitutional court will rule on the legality of the bond rescue plan on June 12. It gave a provisional go-ahead last September for other parts of the EMU rescue machinery, but limited Germany’s bail-out share to €190bn (£160bn). Crucially, it warned that the Bundestag may not alienate its tax and spending powers to any supra-national body or be exposed to “unlimited” liabilities.  “If the court rules against OMT, it means the end of the euro. The stakes are so high that I don’t see how they could just pull the trigger,” said Mats Persson from Open Europe.  He said the Draghi plan is a legal hot potato because it is, by definition, unlimited. “The previous rulings by the court have all been predicated on this point.”  German historian Michael Stürmer said the tough report is a bid by the Bundesbank to “reassert its primacy”. “They have told the ECB in no uncertain terms that it is exceeding its mandate. Angela Merkel may be smiling because this helps her set limits in Europe.” Prof Sturmer said the forthcoming ruling - wider than just the Draghi plan - is “much more serious” than last September’s judgment, limited to an injunction brought by eurosceptic groups. “This is about issues of sovereignty. I don't think the Court will dare to issue a ruling before the elections in September. They will procrastinate,” he said. The court has some jurisdiction over ECB policy because it intrudes on the German Grundgesetz, or Basic Law. “Once the ECB starts bailing out states it is moving into dangerous waters,” he said. The court made a glancing reference to OMT in September, stating that ECB bond purchases “aimed at financing the members budgets is prohibited, as it would circumvent the ban on monetary financing”. The bond markets ignored the leaked report on Friday, confident that the court will once again find some formula to avert a crisis. It could cite a clause in the Lisbon Treaty stating that the ECB has a duty to “support the general economic policies in the Union”, which would include saving the euro. “They might refer the case to the European Court but that would leave the Sword of Damocles hanging over the market for another two years,” said David Marsh, author of books on the Bundesbank and EMU. “I think use of OMT is practically impossible until this is resolved.”   Sovereign bond strategist Nicholas Spiro said markets are “sick and tired” of the eurozone debt crisis and have stopped paying attention to the detail. “There is this ravenous hunt for yield and they think there is all this money coming from Japan. But it has long been unclear whether OMT is real or just a myth, and the eurozone’s underlying economic crisis is still getting worse. The window of opportunity created by Draghi has been wasted.  “If the court sides with the Bundesbank in any way the whole house of cards could come crashing down.”  “If the court sides with the Bundesbank in any way the whole house of cards could come crashing down.”   Although I believe the Court should do so, in no way means that it will, far more likely the can gets kicked farther down the road, such is the nature of the beast we are dealing with. Drahgi, Rumpoy and Barosso sit there smugly in their ivory towers secure in the knowledge that they have the world by the short hairs so to speak, well I fear the world has had enough of the troublesome eu and it will all end sometime soon, for my part the sooner the better......Kill the euro and the EU !!!!