German economist says court could block Greek aid

PRAGUE, April 29 (BestGrowthStock) – An economist who has threatened
a legal challenge to German aid for Greece said Germany’s
highest court was unlikely to refuse his complaint because
support for it was growing.
Joachim Starbatty, a professor at Tuebingen University, told
Czech newspaper Mlada Fronta Dnes in an interview that the best
solution would be for Greece to exit the euro zone and devalue
its currency to revive its debt-stricken economy.

“We expect that the Federal Constitutional Court will not
reject our suit, because our initiative has unbelievably big
support,” Starbatty told the newspaper.

How the court might respond to a challenge is uncertain. It
could suspend German aid while it assessed its legality, but
legal experts say that due to the matter’s urgency, the court
could also allow aid to flow while it looked into it.

History also shows that the court could move quickly to make
a ruling on a challenge.

Starbatty said both citizens and political parties had shown
support for the challenge, which could prove a headache for
Chancellor Angela Merkel, who heads a centre-right coalition of
conservatives and pro-business Free Democrats (FDP).

“Differences in opinion exist also in the governing
(conservative) CDU/CSU, but over the past weeks the support has
strengthened substantially,” Starbatty said.

Merkel said on Wednesday that Greece’s international bailout
must be accelerated for the sake of the euro zone. Markets have
been hit over fears that Greece may not secure aid in time to
meet a debt deadline of May 19.

Starbatty said Greece leaving the zone and having its own
currency would be the best solution to its problems.

“If they had their own currency, which they could devalue,
they would get back their competitiveness,” he said.

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(Reporting by Jason Hovet; editing by Ralph Boulton)

German economist says court could block Greek aid