The Constitutional Court concluded that there was no incompatibility between the Lisbon Treaty and the Basic Law and therefore the Federal Republic could in principle complete the ratification process without a problem.
It held that the Lisbon Treaty does not transform the EU into a federal state and such a transformation would have been contrary to domestic German law. It also held that the Lisbon Treaty does create an EU citizenship to supersede a national one, and does not oblige member states to provide troops for a European army. In essence, the Constitutional Court finds that the member States of the EU wield the political power.
But, the Constitutional Court continued, the German bill ratifying the Treaty requires modification before it can enter into force and be compatible with the Basic Law. The Court held that in order for the bill to be constitutional, it must provide for more participation of the German Parliament in matters bringing about the transfer of greater powers the EU institutions.
Consequently, ratification cannot proceed in Germany until the domestic legislation is brought into line with the Basic Law.
For our post on the Lisbon Treaty and the Czech Constitutional Court, see here.