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‘Democracy’ the winner in Greece: Podemos

The leader of Spain's leftist Podemos party on Sunday hailed results from Greece's referendum showing voters decisively rejecting creditors' bailout terms as a victory for democracy.

'Democracy' the winner in Greece: Podemos
"Today in Greece democracy has won," said leader of Podemos, Pablo Iglesias. Photo: Iakovos Hatzistavrou/AFP

“Today in Greece democracy won,” Podemos leader Pablo Iglesias, a close ally of Greek Prime Minister Alexis Tsipras, posted on his Twitter page.

Another senior Podemos member, Rafael Mayoral, who was in Greece for the referendum, added: “Joy is in air at Syriza headquarters.”

Spain's conservative Prime Minister Mariano Rajoy – who had urged Greeks to accept the bailout proposals – called for an emergency meeting of the country's economic affairs committee on Monday.

Vice president Soraya Saenz, Economy Minister Luis de Guindos and Finance Minister Cristobal Montoro will be among those attending the crisis talks on the Greek vote.

The conservative government has nervously been eyeing the Greek debt saga, warning that a replay of Syriza's policies could derail the Spanish economy's recovery from the worst downturn in its democratic history.

Spain grew by 1.4 percent last year, its first full year of growth since a property bubble burst in 2008, putting millions of people out of work.

But its jobless rate was stuck at 23.78 percent in the first quarter, the highest rate in the eurozone after Greece's which stood at 25.6 percent in March.

With less than six months to go before a general election at the end of the year, Rajoy's ruling Popular Party is also under pressure from Podemos and the main opposition Socialist Party in opinion polls.

Madrid's new leftist mayor Manuela Carmena, who swept to power last month on an anti-austerity platform backed by Podemos, posted on her Twitter account as the Greek votes came in: “Nobody who believes in democracy can contest the result of a referendum. Let's govern by listening.”

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COVID-19

Court turns down AfD-led challenge to Germany’s spending in pandemic

The German Constitutional Court rejected challenges Tuesday to Berlin's participation in the European Union's coronavirus recovery fund, but expressed some reservations about the massive package.

Court turns down AfD-led challenge to Germany's spending in pandemic

Germany last year ratified the €750-billion ($790-billion) fund, which offers loans and grants to EU countries hit hardest by the pandemic.

The court in Karlsruhe ruled on two challenges, one submitted by a former founder of the far-right AfD party, and the other by a businessman.

They argued the fund could ultimately lead to Germany, Europe’s biggest economy, having to take on the debts of other EU member states on a permanent basis.

But the Constitutional Court judges ruled the EU measure does not violate Germany’s Basic Law, which forbids the government from sharing other countries’ debts.

READ ALSO: Germany plans return to debt-limit rules in 2023

The judgement noted the government had stressed that the plan was “intended to be a one-time instrument in reaction to an unprecedented crisis”.

It also noted that the German parliament retains “sufficient influence in the decision-making process as to how the funds provided will be used”.

The judges, who ruled six to one against the challenges, did however express some reservations.

They questioned whether paying out such a large amount over the planned period – until 2026 – could really be considered “an exceptional measure” to fight the pandemic.

At least 37 percent of the funds are aimed at achieving climate targets, the judges said, noting it was hard to see a link between combating global warming and the pandemic.

READ ALSO: Germany to fast-track disputed €200 billion energy fund

They also warned against any permanent mechanism that could lead to EU members taking on joint liability over the long term.

Berenberg Bank economist Holger Schmieding said the ruling had “raised serious doubts whether the joint issuance to finance the fund is in line with” EU treaties.

“The German court — once again — emphasised German limits for EU fiscal integration,” he said.

The court had already thrown out a legal challenge, in April 2021, that had initially stopped Berlin from ratifying the financial package.

Along with French President Emmanuel Macron, then chancellor Angela Merkel sketched out the fund in 2020, which eventually was agreed by the EU’s 27 members in December.

The first funds were disbursed in summer 2021, with the most given to Italy and Spain, both hit hard by the pandemic.

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