German Federal Constitutional Court on Tuesday banned a special committee of the Bundestag from approving emergency decisions over the country's future participation in the bailouts of ailing eurozone partners.

In its latest ruling, the Karlsruhe-based court said such decisions were beyond the power of the nine-member committee.

Budgetary policy, which includes decisions about the euro since it involves public money, "is the responsibility of the whole Bundestag," said chief justice Andreas Vosskuhle.

The verdict could retard any quick responses by Berlin and hamper its ability to curb the spiling crisis, as any future decisions on bailout programs would have to be made by a 41-member budget committee or a full Bundestag session of up to 620 members.

The German parliament created the fast-track committee in October 2010 with the aim of taking urgent and swift decisions to fight the eurozone debt crisis. But two opposition MPs filed a complaint against the committee arguing that it had "no adequate representation of the Bundestag."

Nevertheless, Peter Altmaier, the parliamentary leader of Chancellor Angela Merkel's ruling party Christian Democratic Union (CDU), had argued for the legitimacy of the nine-member panel, saying that it had been directly elected by the Bundestag.

Norbert Lammert, speaker of the Bundestag who is also from CDU, argued that "to replace the 9-member-group by the 41-member committee is an inferior option."

German Finance Minister Wolfgang Schaeuble also said a referral to a larger scale would not be in favor of international negotiations.