Tuesday, July 05, 2011

The Greeks May Not Get That Bailout After All

Since the German courts MIGHT decide they are illegal. Germany's judges hold the euro's fate in their hands - Telegraph
The judges have distilled a plethora challenges to the Greek, Irish, and Portuguese bail-outs into three complaints. These include one by a group of professors who argue that the Greek loans subvert the Bundestag, violate the "no bail-out" clause of the Lisbon Treaty, and amount to the creation of a fiscal transfer union, by stealth, without the requisite changes in the German Grundgesetz, and "strike a blow at the constitutional foundations of our state and our society".
What do you know, people in other countries ARE worried about constitutional law.

And the politics might take a back seat. (I said "might.")
Andreas Vosskuhle, the court's president, noted acidly that the hearings were not about the "future of Europe or the handling of the debt crisis". They are a matter of law.
And as someone or another pointed out, the bailouts are all about saving the European Welfare State, in all its excesses.

No comments: