Greek Contagion – Portugal Plays Good by accelerating Deficit Reduction
May 8, 2010Repercussion of China's Internet Espionage of Indian Sites – Huawei and ZTE banned from India
May 8, 2010Good news for the Bailout Cheerleading Gang as the top German Court refused to block the emergency aid to Greece which had been approved by the Legislature on Friday. Top Economists of Germany which had filed a petition to block the aid as it violated the EU Charter failed in persuading the court to stop this aid. Note these economists had tried to block Germany’s merger with EU in 1998. Wonder whether the Germans are regretting joining the Eurozone.If they are not , I think the coming days will make a majority regret it.
Top German Court Denies Emergency Ruling on Greek Aid -Bloomberg
Germany’s highest constitutional court rejected an attempt by a group of economists and university professors to block the nation’s participation in a 110 billion- euro ($140 billion) aid package for Greece.
The court denied their request for an emergency ruling that would prevent the government from taking any steps as long as the case was pending, the Federal Constitutional Court in Karlsruhe said in an e-mailed statement today. An interim ruling would be more damaging to Germany if the rescue measures were later deemed to be constitutional, the court said.
German lawmakers approved yesterday loans of as much as 22.4 billion euros for Greece, with the lower house of parliament in Berlin voting 390 to 72 in favor of the country’s share of the financial lifeline from the euro region and the International Monetary Fund that will allow Greece to avoid default. The upper house, where Germany’s 16 states are represented, also backed the bill.
Unless the government acts now, the whole rescue attempt may be endangered, the court said.
The group of five economists and professors sought the emergency ruling as part of a complaint at Germany’s top court, arguing that the aid package violates the “no bailout-clause” in European Union governing treaties.
The plaintiffs, law professor Karl Schachtschneider, economists Joachim Starbatty, Wilhelm Hankel and Wilhelm Noelling, and former Thyssen AG Chief Executive Officer Dieter Spethmann, have previously tried to block German involvement in key EU measures.
Starbatty, Hankel, Noelling and Schachtschneider unsuccessfully sued to prevent the adoption of the Euro in 1998. Spethmann was among the plaintiffs who tried to block Germany’s adoption of the 27-nation bloc’s Lisbon treaty. The court dismissed that case last year.