Discover and read the best of Twitter Threads about #PSPP

Most recents (7)

1/ Today at 9.30 am, the German Constitutional Court announces its decision whether the ECB is sufficiently complying with its #PSPP ruling from May 2020.
In the following thread I want to briefly discuss two important aspects of this ruling: Proportionality and Accountability.
2/ Proportionality: In last year’s decision the GCC made clear that it sees the PSPP as overstepping the boundaries of monetary policy into the realms of economic policy which is supposed to be in the hands of national governments.
3/ However, GCC acknowledges that extraordinary circumstances might justify unconventional measures that might have unintended economic policy like effects. The question was whether PSPP was a proportionate measure to ensure price stability despite its unintended (side) effects.
Read 16 tweets
Die #EZB muss endlich ihren Job machen dürfen. Dazu muss das Mandat der EZB geändert werden. Unabhängigkeit ist jedoch kein Blankoscheck wie in der Euro-Krise. Der Bundestag braucht einen geldpolitischen Dialog mit der Bundesbank nach dem Vorbild des Europäischen Parlaments. (1)
Anleihekäufe gehören zum Instrument der Geldpolitik von Zentralbanken. Auch jede Zinsentscheidung wirkt sich auf die Wirtschaft aus & ihre Effekte müssen Zentralbanken in den Blick nehmen. Die ökonomische Kritik des #Bundesverfassungsgerichts ist daher schwer nachvollziehbar. (2)
Die Staatsfinanzierung ist der EZB nach den #EU-Verträgen verboten. Die EU-Verträge zwingen die #EZB, so zu tun, als ob sie keine monetäre Staatsfinanzierung betreibe. (3)
Read 10 tweets
This thread is for those of you who don’t find the time to read my #PetersbergSpeech in full. Link to English translation (including slides):…. Link to original German version:…. Op-ed @welt (in German):…. 1/11
Main message: Without the #PEPP and our other measures, we would now presumably be in the midst of a severe financial crisis. The measures taken by the ECB are (1) necessary, (2) suitable and (3) proportionate to ensure price stability in the euro area. 2/11
Important clarification: This speech is not about #PSPP, subject to a court case @BVerfG. It is about the measures taken in response to the pandemic, designed specifically for the pandemic & containing own safeguards to protect fundamental principles of the currency union. 3/11
Read 11 tweets
My main take-aways from today's 🇩🇪 #Bundestag debate re the @BVerfG judgement on the @ecb's #PSPP:
- a nuanced and high-quality discussion (both by MdBs and experts)
- #Bundestag faces dilemma (required by @BVerfG to review @ecb policies, but unclear how) - a short thread 1/x
- Majority of experts recommended #Bundestag to exercise restraint and consider ECB Annual Report/regular hearings/MEP letters @Europarl_EN the appropriate channel to discharge accountability
- Should be easy for @ecb, which has already published a lot of information 2/x
- Most experts rejected/condemned @BVerfG's decision (both wrt procedure & substance) - warn about broader implications of judgement for EU legal order
- Experts also noted that @BVerfG Second Senate has changed and @BVerfG could return to “Europe-friendly” jurisprudence 3/x
Read 7 tweets
Tracing the mastermind behind #BVerfG judgment isn't easy. But the judgment draws & quotes heavily from a thoughtful article by Mark Dawson&Ana Bobic @thehertieschool published 2019 in CMLReview

Their criticism became punchline of the #BVerfG ruling against #ECB & #ECJ. Thread
First, Dawson/Bobic criticized that #ECJ already in its #OMT judgment had poorly assessed the evidence provided by #ECB to support OMT

Just as #BVerfG had previously criticized OMT & now argues that ECJ assessment of #PSPP is methodologically flawed (para. 137 of judgment)
...then they point at poor #ECJ analysis of possible alternatives to #PSPP. ECJ should have checked for measures with less burdensome economic side-effects.  

#BVerfG picked up this point in paras 139ff arguing that ECJ unproportionality test is insufficient
Read 7 tweets
After some time away from research due to reasons and stuff, time to get back to my book-proposal. Given recent developments, I thought I'd share some thoughts on what I do.

Put simply, my research concerns the question why there is so much law in EMU. A (long) thread/
The recent judgement by the #BVerfG on the ECB is only the latest instalment of the controversial role of law for the euro. However, there is no proper account of what law exactly does for the euro, why it is so prominent, and lastly, what we may expect from law (and Courts). /2
I argue that we should pay attention to the legal form of the rules of the euro, namely their basis in the EU Treaties. This greatly affects what was expected of the law, how the rules were made and how they can be changed. I call this the constitutionalization of the euro. /3
Read 18 tweets
1/ Tuesday 6 May 10:00 the German constitutional court (#BVerfG) issues ruling on the #ECB’s quantitative easing, the Public Sector Purchase Programme (#PSPP). Here is a short thread on possible rulings and how likely they are:…
2/ What is it about? First, there are doubts about the compatibility of the PSPP with the prohibition of monetary financing according to Art. 123(1) TFEU…
3/ Second, the ECB might have overstepped its mandate. According to principle of conferral (Art. 5 of the Treaty on European Union – TEU, in conjunction with Arts. 119, 127 et seq. TFEU), the ECB shall act only within the limits of the competences ...…
Read 22 tweets

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