The Tribunal Constitucional of PT has argued that @ecb incorrectly gave precedence to issue limit over capital key, therefore all but stopping the purchase of PT bonds. However, unlike GCC, it recognizes it has no jurisdiction over ECB and it has ordered 2/n
...the Portuguese Government to issue more new debt so that @ecb can make up the difference. The Government has answered that it should not be a problem, considering the massive deficit coming because of COVID-19. Next, Estonia 3/n
The Riigifohus (Estonia) has also argued against the misuse of the capital key. It has rejected the objection that there is no Est. debt whatsoever to be bought. Has therefore ordered the electricity company to issue more debt as the Constitution forbids public debt forever 4/n
The Corte Costituzionale (ITA) has argued that @ecb should have used market cap and not capital key to allow more purchases of Italian debt. However, advised by lawyers from M5S, ordered @bancaditalia to sell all its BTp holdings, but coordinating w @bundesbank sale of Bunds 5/n
In Spain, the Tribunal Constitutional has provisionally rejected a claim form Catalonian lawyers and economists led by Andreu Mas-Colell that @ecb should buy more Cat debt, saying that Catalonia is not a country. Riots ensued in Barcelona. Spanish police arrested Mas-Colell. 7/n
The Centre for the Law in Central Banking (CLic) plans to continuously update its review of national const. courts decisions vs @ecb and organize a conference on NCC vs ECB in the spring 2021. 8/n
Conference at CLiC will be co-chaired by M.Draghi, A.Vosskuhle (tbc), both ultra vires, neither super partes. Also tbc @WielandVolker @VMRConstancio @AdamPosen @Lagarde @LBiniSmaghi @R2Rsquared @BaldwinRE @fwred @FabioGhironi @upanizza @mark_dow @Erik_Jones_SAIS @ErikFossing 9/n
Finally, also to be confirmed @HmsGerlach @nicolas_veron @claudiperez @LorcanRK @SMerler @FranCanJourno @economistmeg @Economist_Kat @senoj_erialc @isa_bufacchi @Isabel_Schnabel @jeuasommenulle @a_presbitero @taddei76 10/end
