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Germany high court rejects temporary injunction against Greece bailout contribution

By Haley Wojdowski

[JURIST] Germany's constitutional court [official website, in German] Saturday refused [judgment, in German; press release, in German] to issue a temporary injunction against the German government's €22.4 billion ($28.5 billion) contribution [WSJ report] to a bailout package for Greece, which has lately been gripped by a critical debt crisis [BBC report]. The suit, brought by four lawyers and a businessman, claimed that the contribution would violate Germany's constitutional law. The court held that the complainants did not produce any "concrete evidence" that their rights, in particular their rights under Article 14 [text, in German] of Germany's Basic Law, could be "seriously and irreversibly" affected as a result of the guaranteed loan. The court's press release also noted that potential liability risk as a result of the contribution is outweighed by reducing the risks of damaging Germany's national economy as a result of instability of the European Monetary Union.

On Friday in Brussels, euro-zone leaders approved [BBC report] a €110 billion aid package for Greece to be repaid over three years. The "euro rebels," [DW report], the same four lawyers who brought the Greece suit, had previously sought to block block Germany's adoption of the euro.

Full post as published by JURIST - The Paper Chase on May 08, 2010 (boomark / email).