German economist aims to stop Greek bailout in court

A German economist is to make a legal challenge against the aid package for Greece agreed by finance ministers, a German newspaper reported today.

Joachim Starbatty, a professor at Tübingen University, told the Rheinische Post the eurozone aid package breached the EU's Maastricht Treaty.

He is working with constitutional lawyer Wilhelm Hankel to try to stop the deal. "We will file a suit at the Constitutional Court against the credit from euro states," he said.

Starbatty said the aid package was forbidden as a subsidy 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 available to comment.

On top of the economist's protest, an unidentified member of the German cabinet was quoted today as saying the 30 billion package would only be a first step and could end up "at least double the amount".