Monday September 22, 2014 Search
Weather | Athens
31o C
22o 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)  
Results of probe into 20 Lagarde list names due soon
Police refute reports of Jihadi training
Gov’t drafts plan to secure exit from memorandum
Greek commuters have relatively long wait
ANALYSIS
Pegging reforms to debt relief acts
The government appears determined to walk the road of Portugal by tapping the markets to avoid a third bailout loan from the EU and even show the IMF the door. However, it may trip if talks ...
Demand for diesel boosts total fuel sales
After five years (2009-13) of decline, the fuel market returned to positive territory in June, albeit at the marginal rate of 0.3 percent year-on-year, according to official data, capitalizi...
Inside Business
SOCCER
Reds beat Veria to claim league lead
Olympiakos thumped hitherto Super League leader Veria 3-0 on Saturday to go alone on top of the table for the first time after four rounds of games. Four days after putting three past Atleti...
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
Inside Sports
COMMENTARY
Universities threatened by transfers
The problem arising from the abuse of the Greek university transfer system – whereby some students are allowed to move to an institution of their choice instead of the one they were admitted...
EDITORIAL
Capital changes
A sizable part of the middle of the Greek capital has been slated to receive a significant makeover with the implementation of an urban restructuring project which includes turning a key cit...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Reds beat Veria to claim league lead
2. Pegging reforms to debt relief acts
3. Demand for diesel boosts total fuel sales
4. Foreign investors not overly concerned about political risk
5. IMF unhappy over social security debt collection
6. Agenda
more news
Today
This Week
1. IMF unhappy over social security debt collection
2. Foreign investors not overly concerned about political risk
3. Demand for diesel boosts total fuel sales
4. Agenda
5. Pegging reforms to debt relief acts
6. ‘Greece can meet its needs on its own’
Today
This Week
1. Greece at bottom of social justice scale among EU28
2. ‘Greece can meet its needs on its own’
3. Central Athens traffic restrictions back in force on Monday
4. Lost in the fog
5. Record sum of new debts to the state in August
6. Democracy under Pressure | Live Streaming
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.