Tagged: Bundesverfassungsgericht

The AG’s opinion on the Outright Monetary Transactions Case

By Daniela Jaros

On January 14, Advocate General (AG) Cruz-Villalón issued his opinion in the reference for a preliminary ruling on Gauweiler et al. v Deutscher Bundestag on the ECB’s Outright Monetary Transactions (OMT). The OMT Programme launched in September 2012 was part of a series of measures taken by the ECB in response to the Euro crisis accompanying the loan facilities (European Financial Stability Facility – EFSF, European Stability Mechansim – ESM).

The German Constitutional Court (Bundesverfassungsgericht, “BVerfG”) had asked the Court of Justice (CJEU) two questions in what it classified as an ultra vires review of acts of the European Union. Roughly speaking, the BVerfG wanted to check whether the European Central Bank (ECB) had transgressed the limits of its powers derived from the treaties. If the ECB had, this would have consequences for the constitutional identity of Germany. Therefore, the BVerfG first wanted clarification on whether the Outright Monetary Transactions (OMT) Programme was an economic rather than a monetary measure and whether the ECB had therefore exceeded its powers by establishing it.  Second, the BVerfG raised the question whether the OMT programme was not violating the prohibition of monetary financing of Member State. Continue reading

German Constitutional Court on the ratification of the ESM Treaty and of the Fiscal Compact

On the 12th September 2012, the German Constitutional Court issued its much-expected third judgment on the constitutionality of measures that have been taken at the level of European and international law in response to the ongoing sovereign debt crises in the Eurozone and the crisis of the currency union that resulted thereof.

Although the decision as such bears nothing revolutionary, the interesting issues of this case lay in its details, particularly the parts of the decision regarding the representation of the German parliament in the ESM and the lack of termination clauses in both treaties. This is why I am going to do a rather detailed summary of the applicants’ arguments, of the government’s opinion and the court decision first and only comment on the case in the second part of this entry.

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