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EU could open legal case against Germany over ECB bond-purchases ruling: Commission

Economy May 10, 2020 01:40PM ET
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2/2 © Reuters. FILE PHOTO: News conference after a video conferenced EU summit with European heads of state, in Brussels 2/2

BRUSSELS (Reuters) - The European Commission could open a legal case against Germany over a ruling by the country's constitutional court that the European Central Bank had overstepped its mandate with bond purchases, the EU executive arm said on Sunday.

The German court in Karlsruhe last Tuesday gave the ECB three months to justify its flagship euro zone stimulus scheme or said the Bundesbank might have to quit it.

In response, the European Union's top court - which had previously gave its green light to the ECB scheme - and the European Commission have said that EU law holds precedence over national regulations. They added that the European Court of Justice's rulings were binding for courts in the 27 member states of the bloc.

On Sunday, Commission President Ursula von der Leyen went a step further, saying the EU executive might end up opening a legal case against Berlin.

"The recent ruling of the German Constitutional Court put under the spotlight two issues of the European Union: the euro system and the European legal system," she said in a statement.

"We are now analysing the ruling of the German Constitutional Court in detail. And we will look into possible next steps, which may include the option of infringement proceedings," she said.

Infringements are legal cases the Commission can bring before the Luxembourg-based Court of Justice of the EU, if the Brussels-based executive deems a member state is violating EU law. The court can order a nation to make amends, or face hefty fines.

EU could open legal case against Germany over ECB bond-purchases ruling: Commission
 

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Comments (5)
Me comment
Me comment May 10, 2020 5:30PM ET
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The start to the end of the EU.
Mart Bab
Rubberduck1973 May 10, 2020 2:40PM ET
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There will not be a breakup. EU people feel more connected to itch other than our politicians sometimes represent. There is only one issue always. And that’s government spending. Italy may fall out of the block. The spend like the USA. But they don’t have a fiat currency 🙈. I hope the Italians force their government to balance the budget beter than they have been doing in the past. And reform. This will always be a problem for Italy. Eu or no EU.
Damir Jozic
Damir Jozic May 10, 2020 2:02PM ET
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Nonsene!
maga king
maga king May 10, 2020 1:27PM ET
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eu breakup might be sooner than we thought lol
Sam Smith
Sam Smith May 10, 2020 1:27PM ET
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not as soon as some may think ... as long as Merkel stays in power.
Ľubomír Gajan
Ľubomír Gajan May 10, 2020 1:27PM ET
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it has nothing with merkel. We Europeans want and will stay together.
Luca Bonaldo
Luca Bonaldo May 10, 2020 1:08PM ET
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lol
 
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