It’s no secret that Germany has have their differences with the European Central Bank which, meanwhile is not as sweet as it is Certain members of the Euro Zone and first certainly useful in bring Greece to the heels, maybe also a little more loose with a wallet under the citizens of one of the members than should be under the tightly closed Teuton. Long lasting frustration with German euro spending things that the Germans don’t want certainly felt by members of the German Constitutional Court, who voted this week to express these feelings basically declaring the ECB unconstitutional under German Basic Law.
This is possible, catharsis. But maybe also baseless and more precisely put other things near and close to the heart of Germany, that is the third successful attempt at conquest Europe for the past 70 years, even that Wolfgang Schäuble, who have never failed to get excited about the austerity measures, thought the court maybe it’s a little far.
“The court asked the central bank to show that it took a decision on the principle of proportionality,” Lorenzo Bini Smaghi, chairman of Societe Generale and former ECB executive board member, told CNBC “Squawk Box Europe” on Friday.
“To be honest, to think that the ECB did not do that is ridiculous – there is a lot of research, reports, statements, which clearly shows the ECB does not only meet in five seconds and says’ let’s raise interest rates or cut rates suddenly. There is a very deep analysis, discussion, argument, and sometimes disputes. “
“It is very likely that the existence of the euro is now being questioned in other EU member states, because each national constitutional court can decide on its own,” Schaeuble, who now heads the lower house of the German parliament, told Redaktionsnetzwerk Deutschland. “This situation makes no one happy …” Schaeuble acknowledged that as finance minister he was also dissatisfied with some ECB decisions, saying independent institutions without democratic legitimacy must cling to their mandates. That means “it is not easy to refute” the German decision.
Now, as it did, the European Court did not experience much difficulty in rejecting it at all.
In an unprecedented counterattack on Friday, the European Union Justice Court said its entire aim was to ensure EU law was properly implemented in all 27 bloc countries. It says “alone” has “jurisdiction to decide that the actions of EU institutions are contrary to EU law ….”
In the decision – dubbed the “declaration of war” by a law professor – German judges condemned their colleagues in the European Union, saying that they exceeded their strength when they supported ECB policy in a previous decision.
In a statement Friday, a European Union court warned that “differences between the courts of member states” would “be responsible for endangering the unity of the European Union’s legal order and for reducing legal certainty.”
And, as a reminder, the declaration of the last German war did not go well.