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Complaint made to top German court against banking union: Report

Published on Jul 27, 2014 8:19 AM
 
Picture taken on July 3, 2014 shows the logo of the European Euro currency standing in front of the European Central Bank (ECB) in Frankfurt am Main, western Germany. A group of professors has lodged a complaint with Germany's Constitutional Court against Europe's planned banking union, which starts work in November, Welt am Sonntag newspaper reported on Sunday. -- PHOTO: AFP

BERLIN (REUTERS) - A group of professors has lodged a complaint with Germany's Constitutional Court against Europe's planned banking union, which starts work in November, Welt am Sonntag newspaper reported on Sunday.

The union is Europe's main confidence-building response to the financial sector crisis.

Under the plans, the European Central Bank will take over as banking watchdog and will have the means to shut lenders it decides are too weak to survive.

"The banking union has no legal basis in European treaties and so represents a breach of the Basic Law," Berlin lawyer Markus Kerber, a professor in public financial and economic policy, was quoted as saying in the paper.

 
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