German court case could force euro exit, warns key judge

Crucial hearings on the eurozone’s bail-out policies at Germany’s top court this week could set in motion events that force Germany’s withdrawal from the euro, a leading judge has warned.

Udo di Fabio, the constitutional court’s euro expert until last year, said the explosive case on the legality of the European Monetary Union rescue machinery could provoke a showdown between Germany and the European Central Bank (ECB) and ultimately cause the collapse of monetary union.

emmiem: Oh dammit Ambrose. Just when Monsieur Hollande has told the entire world that the eurozone crisis is over.  

moraymint: Love it.

HydeParkSoapBox: Does the government have a plan for closing the boarders when England is the only country in Europe with actual cash?

cerberus: HydeParkSoapBox Er, do you mean repelling all boarders? If so it's unlikely anyway as this country is just about as insolvent as any of the PIIGS and getting more insolvent by the hour. Scarcely a day goes by without the gormless tw*ts throwing more hundreds of billions of money they'll have to borrow at some third world hell hole or other.

ultimatequestion: Don't worry Monsieur Hollande, the European Commission will just tell the German courts that they got it wrong and have to go back and consider the question again. Or they might refer the case to the European Court of Human Rights on the grounds of breaching the rest of Europe's Human Rights to a free loan. The TGV/ICE/HST EU train is running full steam ahead at n-hundred kilometres an hour and the driver can't see all the collapsed bridges, fallen trees and landslides across the line round the next corner. This is going to be an almighty crash with a lot of casualties.

Oliver Jones: “When religion and politics travel in the same cart, the riders believe nothing can stand in their way. Their movements become headlong - faster and faster and faster. They put aside all thoughts of obstacles and forget the precipice does not show itself to the man in a blind rush until it's too late.” -- Frank Herbert, Dune (published 1965)

likegrace: The EU is a religion; inspired by blind faith rather than rational logic. And far worse we don't even get a choice whether to attend the ceremonies, we get mass baptised by our traitor politicians like Brown at Lisbon

mistertoad: German politics is evidently in flux. In the past German judges did what the elite wanted - all previous challenges to Euro arrangements on constitutional grounds all failed. Has the German elite changed its mind? Is this the right way forward for them, even if it means destroying the current incarnation of the Euro? Or could the threat of Euro withdrawal be the weapon that the elite need to persuade other EU nations to bend to the need for "reform"? Well German blogs indicate extreme dismay in Germany, and a high degree of sympathy for the typical British anti EU view. This will help the new insurgent party Die Alternative. They want "reform". Merkel is fighting for her job - and the key issue is clearly the Euro, and the future of the EU. These are the most fascinating, but dangerous times for us and Europe for decades, perhaps not since WW2. Personally, I think the EU will fail - and deserves to. Britain needs to get out of this sinking, if not stinking ship.

em2: The "elite" is cowardly and duly, means they will never stop the euro. Ironically members of this national court are nominated from the governement. Independed? sure for minor issues such like rights for gays.

unhappyscientist: The "elite" are not so much "cowardly" as greedy. However I agree that that they will not willingly give up the Euro as they know the short term consequencies for their bankster friends will be horrific. The EU must be killed by an extraneous force. Currently UKIP and the German "Alternative für Deutschlands" party are the best catalysts. The EU without Germany and the UK would be instantly bankrupt and would fall apart. 

ultimatequestion: That is what David Murrin (an Analytical "Scientific" Historian trying to predict the future of the various world "Empires"), said at the UKIP South-East Conference yesterday.  His advice to the party was that "Britain needs to get off the sinking ship before it goes down", which of course received tremendous acclaim from the delegates. (He is not currently a UKIP member) http://www.davidmurrin.co.uk/ 

mistertoad: Seems very good. Thanks.

Blobby Gutbuster: Germany would be mad to leave the Euro. A re-introduction of the German Mark would make their exports a lot more expensive.  In a nutshell, the Euro is great for the Germans and terrible for anyone less efficient.

michaelindeutschland: blobby whilst still about 60 % of Germans still cling to the euro, it has not been good for us in the middle or below, we have lost at least 40 % of our purchasing power thanks to it. those in the top floors of the Big Banks and Gross Konzerns, they have done well out of the euro a very good analysis I found recently here; the para towards the end which begins "Both are attempting to rectify…"  has it in a nutshell http://www.oftwominds.com/blogmay12/EU-neocolonial5-12.html Germany is not only the worlds second largest exporter , but the worlds second largest importer, and about 45 % of those imports are re-cycled into our exports, so little change there. what it would mean though within a relatively short time, is that the costs to the citizen should start to drop, Petrol, foodstuffs, Russian gas etc. leaving us hopefully with some more over to buy more of  Hollandes wine. the Alternative für Deutschlands supporters such as Hans Olaf Henkel - ex euro fan until he saw the light, propose that the Bundesbank step in as the CH bank does to ensure that the rise of the new German Currency is not too abrupt and manageable - rather the Bundesbank spend monies on this scheme than Target 2…

itzman:  Thanks for the link. Its good.

mistertoad: Michael, I agree.  I doubt if a new DM currency is going to worry ANY German.   Likewise getting out of Europe should not worry ANY citizen in UK. The best way of gauging the mood now is to read what the German press says for the next few weeks before the September election.

em2:  Dear Michel, I fully agree with your statement, well said!

cashboy: Blooby Gutbuster, "Germany would be mad to leave the Euro. A re-introduction of the German Mark would make their exports a lot more expensive. " The reason that people buy German goods is not because of the price. People buy German goods and pay a premium because they are well engineered, well manufactured and quality items and worth paying more for.

englander:  "A re-introduction of the German Mark would make their exports a lot more expensive." It is worth noting that Germany established its export status while using the DM, long before the Euro was introduced.  Exporters typically set their prices to suit each market, so German exports would not be more expensive, although companies might have to accept less profit on their export sales.  A case in point would be German cars sold in the UK in the last few years: GBP:EUR dropped to around 1.10 but there was no sudden jump in the price of BMWs and Mercedes in the same time frame.

LordCurrywurst: "A re-introduction of the German Mark would make their exports a lot more expensive" Germany would still be export-master, like it was under the high valued DMark.  Imported things like  raw materials pre-manufactured goods energy are becoming cheaper with a high valued currency. Those things are the main costs at a manufactured good like a car. Labour costs are below 20% of a product in Germany.

Oliver Jones: Actually, in one well-known German company I once worked for, the workforce amounted to 4% of total expenses. Countries like the UK cannot believe that Germany could possibly benefit from a high-value currency, simply because they cannot! That does not mean the same is true for DACH, however.

unhappyscientist: Curry - This is first time I've agreed with one of your posts ! Do you now believe German exit is the best thing for Germany ?

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