German Finance Minister Wolfgang Schaeuble on Tuesday warned the country's constitutional court of the severe consequences if it failed to approve the EU's permanent bailout fund in time.

Addressing a panel of eight judges, Schaeuble said any delay would deteriorate the turmoil haunting the European financial market and shake investors' confidence.

"A considerable postponement of the ESM, which was foreseen for July this year, could cause considerable further uncertainty on markets beyond Germany and a considerable loss of trust in the eurozone's ability to make necessary decisions in an appropriate timeframe," Schaeuble said.

Germany's two houses of parliament have approved the EU's fiscal pact and its permanent bailout mechanism on June 29. However, this approval is not the final step of ratification, as President Joachim Gauck has decided to delay his sign-off at the request of the Constitutional Court.

The court earlier said that it has received more than 1,000 objections over the two instruments, and needs weeks of time to handle these appeals related to the legality of the ESM and the fiscal pact.

The head of the constitutional court, Andreas Vosskuhle, said that the court may conduct a "very thorough summary review" which could take two to three months.

"In politics, unusual situations and crises often require unusual measures," Vosskuhle said, but adding that the judges would also bear in minds the rights of the opponents of ESM.

The 500-billion-euro (623 billion U.S. dollars) ESM, which is to take over from the European Financial Stability Facility, was originally planned to operate on July 1, whereas Germany, Europe's paymaster, is expected to make a contribution of some 200 billion euros (250 billion U.S. dollars) to the eurozone's permanent rescue fund.