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The European Union (EU) reported that a process of violation of trade union law could be initiated against the decision of the German Constitutional Court on the European Central Bank (ECB) bond purchase program.
Ursula von der Leyen, President of the EU Commission, made a statement regarding the German court’s decision that the ECB’s bond purchase program would be contrary to German law if it could not be shown to be justified.
Noting that the only competent authority for EU monetary policy is the EU, von der Leyen stated that EU law takes precedence over national courts and that decisions of the Court of Justice of the European Communities are binding on all national courts.
“We examined the decision of the German Constitutional Court in detail and evaluated the steps that can be taken, including the option of a rape law,” said von der Leyen.
About the process
Within the scope of the asset purchase program, which started in 2015, the ECB has purchased more than € 2 trillion in the markets.
The practice was widely discussed in Germany, and a group of politicians and academics started a legal process on the program.
The Court of Justice of the European Communities, the highest court in the EU, ruled in 2018 that the ECB’s bond purchase program was legal. Noting that the program in question entered the area of monetary policy for EU countries using the euro, the court ruled that the practice was proportional.
The German Constitutional Court, on the other hand, ruled on May 5 that it would be contrary to German law if the ECB’s bond purchase program could not be shown to be justified.
The court gave the ECB 3 months to explain the justification for the program in question, otherwise the German Central Bank would not be able to participate in the program.
The Court of Justice of the European Communities also announced on May 8 that it was the sole authority to decide whether an EU institution was acting contrary to trade union laws, and that national courts should fully implement EU law.
The EU Commission initiates the process of breaking the law within the EU structure if a member state acts against the EU law. At the end of the process, heavy fines can be imposed on the country in question.
