The OMT’s fragile foundations
"The Greek bailout is almost certainly illegal by the ECJ’s benchmarks. To be legal under Article 125, the financial assistance must be repaid with an appropriate margin. The size of the appropriate margin is presumably a policy decision. But Greece will not repay the vast bulk of its official financial assistance. At the end of a grossly inefficient process, the burden of the sizeable eventual fiscal transfer to Greece will be shared without democratic accountability. In questioning the legality of the OMT, the German Court is essentially asking why the collective incentives will not lead once again to a Greece-like outcome."