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German court to hear euro bailout challenge July 5
Date 10/06/2011 17:59  Author webmaster  Hits 1027  Language Global
10 JUN 2011

• German court will hear eurosceptics' lawsuit in July
• Unclear how long it will take for verdict
• Legal experts doubtful about success of challenge


By Diane Niedernhoefer

KARLSRUHE, Germany, June 9 (Reuters) - Germany's highest court will begin hearing a lawsuit against the efforts to stem the euro zone crisis on July 5, the court said on Thursday.

The lawsuit against euro zone rescue packages, filed last July by a group of five eurosceptics led by economist Joachim Starbatty to Germany's constitutional court, says creating the euro zone rescue funds violates the EU no-bailout clause.

The Constitutional Court in Karlsruhe did not provide any information about the duration of the hearing nor when the verdict may be announced.

Starbatty has argued that the multi-billion euro aid packages for Greece and other euro-zone strugglers are incompatible with EU treaties. The group fears the EU could end up turning into a financial "transfer union".

The complaint lodged with the Constitutional Court argued aid for Greece was not provided for in EU treaties and could increase inflation pressures. Because it was approved in the German parliament, the law for ratification of the aid packages falls under the jurisdiction of the Constitutional Court.

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