Tuesday, July 5, 2011

German court considers challenge to EU bail-outs

BBC News
July 5, 2011

Germany's Constitutional Court is hearing a challenge to the country's participation in bail-outs of Greece, the Republic of Ireland and Portugal.

A Berlin professor argues that the process violates constitutional provisions and should be blocked.

Germany's finance minister rejected the claim, saying all rescue packages had been made on solid legal ground.

The complaint comes as EU negotiations continue over a second Greece bail-out, worth about 120bn euros (£108bn).

The BBC's Stephen Evans in Berlin says it is unclear how the court will rule, but acceptance of the plea could throw the bail-outs into disarray, sparking a political crisis.

However, experts say the court is unlikely to block Germany's participation in the eurozone bail-outs altogether.

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