Useful thread with links on the upcoming ruling by the German Constitutional Court #BVerfG.
What is not sufficently emphasised imho is the risk to the entire legal framework of the EU. It's not just a matter of EMU. The primacy and thus the consistency of EU law is at stake.
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What is not sufficently emphasised imho is the risk to the entire legal framework of the EU. It's not just a matter of EMU. The primacy and thus the consistency of EU law is at stake.
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If countries can subvert agreed EU procedures and institutions, on which the highest EU court, the ECJ, has made a ruling, using national (constitutional) courts, & deriving a legitimacy from their own national constitutions, we are on a slippery slope indeed.
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Update based on first report of the decision (spiegel.de/wirtschaft/ezb…)
We are indeed on a slippery slope. Let us be clear: The GCC (a majority of 7:1 judges) is of the opinion that the ECJ has made an error in interpreting EU law. This is not just a technical mon pol issue.
We are indeed on a slippery slope. Let us be clear: The GCC (a majority of 7:1 judges) is of the opinion that the ECJ has made an error in interpreting EU law. This is not just a technical mon pol issue.
Here's the #BVerfG text in English: bundesverfassungsgericht.de/SharedDocs/Ent…
(Ta @BJMbraun)
Some comments to follow...
(Ta @BJMbraun)
Some comments to follow...
The *German* CC is directly challenging the competence of the ECJ to interpret *European* law properly AND that of the ECB to properly assess the working of monetary policy measures.
Breathtaking.
Prediction: this will blow up in their faces.
Breathtaking.
Prediction: this will blow up in their faces.
The whole underlying philosophy is deeply problematic. As if there were no obligation on the monetary authority to support without prejudice to the primary goal of price stability other EU goals. As if the monetary/economic pol distinction can easily or meaningfully be made
The GCC *does* show awareness of the seriousness of the possible threat to the consistency of EU law through national rulings. Say latter should be rare. But nonetheless ploughs ahead, of all places, in the highly technical and controversial area of monetary policy.
The ECJ only has to clear a low bar to stop the GCC putting its oar in (to mix metaphors).
...but the ECJ fails to clear that bar.
...but the ECJ fails to clear that bar.
The ECJ only has a low bar to clear. But it fails to do so. The GCC therefore feels entitled to brush the ECJ aside.
This wouldn't be so problematic if the economic reasoning of the GCC wasn't so awry. I am running out of time so will at least provisionally outsource to @BJMbraun. Maybe more later.
A rather similar take to the above from the FT's @MESandbu ft.com/content/79484c…
What is important now is that the EU insitutions, particulary those whose competence (in the double sense) the GCC has attacked, do not now jump through the hoop it is holding out.
What is important now is that the EU insitutions, particulary those whose competence (in the double sense) the GCC has attacked, do not now jump through the hoop it is holding out.
On the economic analysis it is worth noting the list of German economic experts the GCC spoke to. If you know the 'landscape', the outcomes are not surprising.
h/t @Matze_Weber
@SDullien @PeterBofinger @AchimTruger
h/t @Matze_Weber
@SDullien @PeterBofinger @AchimTruger
And in case you thought that pointing to the likely reaction in Poland or Hungary was scaremongering, before you can say "rule of law" here it is...
(h/t @Shahinvallee)
(h/t @Shahinvallee)
