Legal Challenge to Greece Aid: 'The Greeks Would Be Well Advised to Exit the Euro Zone'

Spiegel
July 5, 2011

Germany's high court on Tuesday began hearing a legal challenge to the 110-billion-euro aid package provided to debt-stricken Greece in 2010. Retired economics professor Joachim Starbatty is one of those behind the case -- and he expects the court to prove him right.

SPIEGEL ONLINE: Mr. Starbatty, the Greek parliament last week passed a €78 billion package of austerity measures in return for billions more in aid from the European Union.

Starbatty: By approving the package, the parliament decided against the will of the people. But only because it was blackmailed by Greece's partners in the euro zone.

SPIEGEL ONLINE: Is it not legitimate for governments in Europe's common currency zone to want to see a Greek contribution to solving the problem before releasing billions in aid money?

Starbatty: The financial assistance is only there to save the European banking industry. The EU is throwing massive amounts of good money after bad. But it is the Greek people who must endure the brutal belt-tightening measures. I don't consider that to be legitimate.

SPIEGEL ONLINE: Should the German high court side with your view and no longer allow Germany to participate in providing financial assistance to debt-stricken euro-zone countries, Greece would likely become insolvent in a hurry. The monetary union as a whole would also be endangered.

Starbatty: Greece is already broke. The country needs to be given a chance to get back on its feet economically. I expect the court will establish parameters in order to limit the economic nonsense.

SPIEGEL ONLINE: What exactly do you mean by that?

Starbatty: The aid will remain, but the German parliament will in the future have to approve every further credit tranche.

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