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M. Continuo

German threatens legal challenge over Greek aid: report


    BERLIN (Reuters) - A German economist plans to launch a legal challenge at the Constitutional Court against the euro zone aid package for Greece agreed by finance ministers at the weekend, a German newspaper reported on Wednesday. Joachim Starbatty, a professor at Tuebingen University, was quoted by the Rheinische Post paper as saying the aid package breached the EU's Maastricht Treaty.

    "We will file a suit at the Constitutional Court against the credit from euro states," Starbatty told the newspaper, which said he was working with constitutional lawyer Wilhelm Hankel and others.

    Separately, Handelsblatt daily quoted an unidentified member of the German cabinet as saying the 30 billion euro aid package for Greece was only a first step and could end up being "at least double the amount."

    The Rheinische Post said Starbatty viewed the aid package as a subsidy which was forbidden as the interest rate offered was under the market rate for Greek bonds.

    Starbatty, who had previously threatened to take legal action if aid for Greece was granted, was not immediately available to comment.

    (Writing by Madeline Chambers, editing by Mike Peacock)