That means that the EFSF could start buying the Italian of Spanish government bonds on the secondary market if either of these countries requests help and the request is approved by the rest of the eurozone. Such purchases, which have so far been conducted by the European Central Bank, can help stabilize bond prices and lower a country's funding costs.
While the German court ruling was the last major legal hurdle to the EFSF using its broader powers, it is unlikely that the fund will intervene in bond markets anytime soon, as Italian and Spanish bond prices have stabilized in recent weeks.
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Moulson reported from Berlin.
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