German Federal Constitutional Court To Challenge Greek Bailout, Claims Action Is Unconstitutional

Tyler Durden's picture

Just like last year when the first bailout of Greece was met with significant opposition by German constitutional professors, the constitutionality of the upcoming bailout #2 is about to be questioned. Only this time it does not come from powerless academic but from the very top: the Federal Constitutional Court. From Frankfurter Allgemeine (google translated): "The federal government has to explain how the measures are compatible with the Basic Law....The government will have to justify before the court how the measures conform to the stabilization of the European currency with the Basic Law, and possibly with European law. It was originally envisaged in the Second Senate to negotiate in private. But this stance has apparently changed in the course of the discussions." As expected, the fine legal print is once again about to throw a major monkey wrench in the ongoing usurpation of constitutional right by the banking syndicate.

From FAZ:

The Federal Constitutional Court, after information from the Frankfurter Allgemeine Zeitung on Tuesday, 5 July, negotiate the claims against the euro and against the rescue Greece Help orally.

Thus, the government will have to justify before the court how the measures conform to the stabilization of the European currency with the Basic Law, and possibly with European law. It was originally envisaged in the Second Senate to negotiate in private. But this stance has apparently changed in the course of the discussions.

Chancellor Angela Merkel and Finance Minister Wolfgang Schäuble had signed on Wednesday in the government parties to show support for new Greece aids. Schäuble According to information provided by participants estimated the additional demand for the government in Athens in 2014 to around 90 billion euros. Merkel supported the claims to the claim to a participation of private creditors Schäuble on a new aid package. Schäuble explained to Members the outcome of the troika report by ECB, IMF and EU on the situation in Greece. This notes that Greece needs new funding from outside in order to solve its debt problems.

On Thursday, the groups will present a resolution to be adopted on Friday in the Bundestag. In order to intercept the expected displeasure with new grants, called Merkel on Members to voice their demands openly. These will culminate in the German negotiating position that Schäuble, on the 20th Euro Finance Ministers Meeting June and Merkel at the EU summit on 24 want to represent June.

Expressly warned the Chancellor before a rescheduling of Greece, as this could then endanger the situation in Spain and Italy. Greece must reform its tax system. The EU structural funds should be more targeted. "If Greece does not get any new taxes, it would be a bad signal for Portugal and Ireland," Merkel was quoted as saying. Despite criticism by some Members of the CDU and FDP, FDP faction leader Rainer Brüderle showed before the meeting convinced that there is a separate majority of the Coalition for the euro's launch. In addition to a new aid package for Greece includes the proposed rescue ESM from 2013.

The troika report published on Wednesday finds that Greece needs further support from outside in order to solve its problems. "Given the unlikelihood of a return to Greece for the financial markets in 2012, the adjustment program is now under-funded," it says in the results of joint tests of the troika that existed Reuters. "The next payment (from the ongoing Greece-aid package) can not take place before the problem of under-funding is resolved." The euro governments prepare therefore propose a new, possibly three-year aid program.

h/t Martin