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Greece / Council of State / 1506/2014

Bondholders of Greek State bonds v the Prime Minister, the Minister of Finance and the Bank of Greece

Policy area:
Economic and monetary affairs
Deciding Body type:
National Court/Tribunal
Deciding Body:
Council of State
Decision date:

Key facts of the case:

Bondholders of bonds issued or guaranteed by the Greek State claimed that the bonds replacement process that was adopted by a year 2012 act was against the law. We mention that according to that legislation the bonds lost most of their value. The applicants claimed that the process was related with agreements between the Greek and the rest of E.U. States and European bodies on the grounds of compliance of the Greek State in E.U. bodies decisions, thus it is subject to Community Law and not the Greek one. The court decided that the process, although related with multilateral agreement s was based on acts passed by the Greek parliament, in an exercise of sovereign rights of the member State. In that way, according to the court, it is not the E.U. law to be complied. Additionally the "European Financial Stability Facility-EFSF ") which entered the financial facility contracts with Greece, is not an E.U. institution responsible for the implementation of European Union law, but has been founded by members-states of the Eurozone as a private entity. The Charter though, after the Lisbon treaty came into effect, is applicable in the E.U. per se and the member states. By this path of legal though the court denied that there is no reason for a preliminary question to the ECJ.