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When the Commission threatens “lawsuits” after German Constitutional Court decision against “money printing” by European central bankOne thing is for sure: there is something rotten in the eurozone kingdom.
In a confidential letter, European Commission President Ursula von der Leyen told German MEP Sven Giengold that “Brussels is considering options, including legal action against Germany” in the event of a court ruling in the Merkel government case. jeopardizes the future of the euro area.
The case is not -only- a complex legal case, which concerns 2 billion. euro bond that the ECB has already “cashed” from the market and continues.
It is of great political and institutional importance, as it highlights the contradictory structure of the eurozone.
The ECB creates (therefore, “prints”) money with which it buys government bonds from the market and therefore indirectly supports the countries that issue them.
The only court competent for ECB actions is the Court of Justice of the European Communities.
But for the Bundesbank, its central bank Germany, which is “one thing” with the ECB, is responsible for the country’s Constitutional Court, based in Karlsruhe. Budesnbank, for example, buys bonds on behalf of the ECB (as do the central banks of other member states, as they all together form the Eurosystem, along with the ECB).
So yes, the Court of Justice of the European Communities can approve the actions of the ECB (as it already did), but when the German Constitutional Court says “no” to the actions of the Bundesbank, then the deepest problem in the eurozone is It shows, since the latter is not accompanied by a political union.
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