Monday, June 29, 2015

Ambrose Evans-Pritchard — Greece threatens top court action to block Grexit

Greece has threatened to seek a court injunction against the EU institutions, both to block the country's expulsion from the euro and to halt asphyxiation of the banking system.

“The Greek government will make use of all our legal rights,” said the finance minister, Yanis Varoufakis.
“We are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable,“ he told the Telegraph....
Greek officials said they are seriously considering suing the European Central Bank itself for freezing emergency liquidity for the Greek banks at €89bn. It turned down a request from Athens for a €6bn increase to keep pace with deposit flight.

This effectively pulls the plug on the Greek banking system. Syriza claims that this is a prima facie breach of the ECB’s legal duty to maintain financial stability. “How can they justify setting off a run on the Greek banking system?” said one official.
The Telegraph
Greece threatens top court action to block Grexit
Ambrose Evans-Pritchard
ht Clonal

3 comments:

Dan Lynch said...

"Our membership is not negotiable."

So Varoufakis loves the EU so much that he's going to sue for the right to stay in? I really don't understand why Galbraith and Hudson are defending these clowns.

Unknown said...

Dan,
There are two things Syriza is after in the order below:

1. Reform the Euro rules so that real fiscal policy is possible without austerity.
2. If that is not possible, ameliorate the pain of a Grexit.

A successful lawsuit can/may enable these aims. If you can prove that the Greek debt was "odious" for which they have an iron clad case - see Jason Manolopoulos' book and the Greek Parliament committee report - Greek Parliamentary Debt Committee Declares All Debt Illegal, then there will be damages.

If you can show that the ECB acted illegally in shutting down funds to the Greek Banks, again you have damages.

And maybe, just maybe, Europe may decide to change the architecture of the Euro! Good luck on that one!

Neil Wilson said...

They should have disarmed the ECB months ago. It was obvious what stunt they were going to try and pull.

Once again the Europhiles have been played for fools.