German Constitutional Court

"LandepNews"

Eurozone

The crisis that threatened to sink Greece and other countries continues to create problems  as the German constitutional court is to pass a ruling this week on the bailout that Germany offered these troubled countries last year, consisting in a multibillion euro rescue package.
Theoretically, there is even a possibility that the court may demand that the money be given back, if the legality of the action is not proven, but analysts believe that it is more likely that the court will settle to imposing restrictions for the future bailouts.
The constitutional court in Karlsruhe is to pass a verdict on Wednesday in the case brought by a group of euro-sceptic academics and a member of the parliament representing the Christian Social Union.
They contend that the bailout violates the German law and the European treaties and threatens to turn European Union into a “transfer union,” with rich states paying for the lack of management and vision of the poorer ones.

German Constitutional Court

If the plaintiffs win the case, the future of Euro is at stake, because that would place the German state in the position to withdraw its contribution to the eurozone rescue fund, with serious consequences, given that a quarter of the initial €440 billions came from Germany.
The second bailout would also be placed at risk, considering that Germany participates in it with €211 billion. German parliament is expected to debate on it very soon, with political problems for Angela Merkel, whose support in the parliament grows thinner.
Though the judges are not expected to make the drastic decision of declaring the loan illegal, the conditions that will be imposed, which are also being demanded by some of the politicians that will vote in the parliament, will slow down even more the decision-making process in the eurozone.
The focus of the trial will probably the right the parliament has to decide on such matters as the bailout, and budget responsibility.
One of the petitioners said that the euro could be made strong only if it comprised seven strong countries, while another said that for Greece and other poor countries the only solution was exiting eurozone and fortifying their own currencies.
There have been rumors during the last months that even Germany has begun printing again Deutsche Mark and that the leaving of the eurozone by Germany itself is being contemplated by more and more people in this country.

Thank's for link: