Saturday October 25, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
German FinMin defends rescure package for Greece

KARLSRUHE - Germany’s finance minister defended the rescue packages for Greece and other eurozone countries at a supreme court hearing Tuesday, as opponents argued that the bailouts violated both German and European law.

Wolfgang Schaeuble told the Federal Constitutional Court that «the stability of the euro is of paramount significance.» He pointed to the risk of financial instability across Europe and beyond at the time when the government signed on to the initial Greek rescue of May 2010 and also the wider eurozone fund created shortly afterward.

Those plans foresee Germany -- Europe’s biggest economy -- guaranteeing loans up to 22.4 billion euros($32.5 billion) for Greece and 147.6 billion euros for other countries.

Plaintiffs include Peter Gauweiler, a member of Chancellor Angela Merkel’s conservative bloc, who challenged previous European integration measures, and a group of professors.

Chief justice Andreas Vosskuhle said the court didn’t want to hear a debate on the measures’ economic merits, and that the right economic strategy was a matter for politicians and not judges. But, he said, his court «has to consider the limits that the constitution sets for politicians.» Karl Albrecht Schachtschneider, speaking for the professors, insisted that «what is economically wrong can’t be legally right.» He argued that the rescue measures violated a no-bailout provision in the European Union’s Lisbon treaty without sufficient justification.

He also contended that they violated German constitutional clauses protecting property and democracy _ the latter by restricting the German parliament’s control over its own budget.

"A union of liability and debt favoring other states has been created,» he said.

Gauweiler’s representative, Dietrich Murswiek, pointed to current efforts to set up a second Greek rescue package, arguing that loans would sink into a «bottomless pit.» «It’s like trying to repair water damage by blowing up the house,» he said.

In addition, «the rescue fund serves in reality to take risks away from certain big banks,» Murswiek contended, arguing that that would be unconstitutional.

Schaeuble said the government was on solid legal ground, and argued that «we Germans benefit even more from other Europeans from the currency union.» He pointed to German-led efforts to toughen rules governing the 17-nation euro and improve countries’ competitiveness -- efforts which he said need time -- and argued that no major stabilization measure had been taken without parliament’s approval.

"A common currency can’t do without the solidarity of all members,» Schaeuble said. In addition, he noted that «Greece has to fulfill very tough conditions.» Government lawmaker Siegfried Kauder, speaking on parliament’s behalf, said the measures were given full consideration by lawmakers and «no one was forced to vote in favor.» «It’s inaccurate to speak of a ’transfer union,» he said. «There is no ban on solidarity in European law. One doesn’t have to help, but one can.» A ruling is expected this year. [AP]

ekathimerini.com , Tuesday Jul 5, 2011 (14:00)  
Athens, Nicosia satisfied by EU leaders´ stance toward Ankara
Suspended policeman chief suspect in cousin’s murder
No decisions yet on Greek bailout, says Samaras
Prescription fines since 2012 reach 2 bln, says minister
TAIPED waits for green light from Eurostat
Eurostat has frozen the securitization of properties that the Hellenic Republic Asset Development Fund (TAIPED) had been planning. The project, drafted to bring some 400 million euros into t...
Trade deficit shrinks on big drop in imports
Greece’s trade deficit shrank 29.5 percent year-on-year in August as a result of the considerable 16.3 percent decline in imports, Hellenic Statistical Authority figures revealed on Friday. ...
Inside Business
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
BASKETBALL
Greens succumb to first loss at Bayern
Panathinaikos’s unbeaten run in all competitions came an end on Thursday as the Greek champion lost 81-75 at Bayern Munich for the Euroleague. Bayern is a team that improves every year, and ...
Inside Sports
COMMENTARY
Tension for tension’s sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has – and prevailed – if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. TAIPED waits for green light from Eurostat
2. Trade deficit shrinks on big drop in imports
3. SMEs unable to claim subsidies
4. Taxes kept growing in second quarter
5. Thessaloniki Port expects 2014 to be record year
6. Athens, Nicosia satisfied by EU leaders´ stance toward Ankara
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. Clocks to go back 1 hour on Sunday
3. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
4. ECB vies for third time lucky in European stress tests
5. ECB bank assessment to show 6-billion-euro capital gap, Citi says
6. Cyprus GDP upgrade seen as boosting bailout exit plans
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Samaras’s crumbling Greek exit lacks backing from economists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.