GERMANY: German Constitutional Court holds a two-day public hearing into charges against the euro zone's bailout fund and the ECB's bond-buying programme

Record ID: 858793

  • Title: GERMANY: German Constitutional Court holds a two-day public hearing into charges against the euro zone's bailout fund and the ECB's bond-buying programme
  • Date: 12th June 2013
  • Summary: KARLSRUHE, GERMANY (JUNE 12, 2013) (REUTERS) EXTERIOR OF GERMAN CONSTITUTIONAL COURT BUILDING SIGN READING IN GERMAN "GERMAN CONSTITUTIONAL COURT" PEOPLE ARRIVING AT GERMAN CONSTITUTIONAL COURT ECB (EUROPEAN CENTRAL BANK) EXECUTIVE BOARD MEMBER JOERG ASMUSSEN ARRIVING (SOUNDBITE) (German) PLAINTIFF PETER GAUWEILER, GERMAN POLITICIAN AND MEMBER OF BAVARIA'S CHRISTIAN SOCIAL UNION (CSU), SAYING: "The court very clearly said yesterday that it is not acceptable - according to the German constitution - if international organisations like the European Central Bank act outside their constitutional authorization. And the yesterday's hearing has shown how massively the European Central Bank has left the European legal framework which was specified by the treaties of the EU member states."
  • Embargoed: 27th June 2013 13:00
  • Keywords:
  • Location: Germany
  • City:
  • Country: Germany
  • Topics: Legal System,European Union,Economy,Politics
  • Reuters ID: LVAE5CV37FC2LJPB7END11CP05E4
  • Aspect Ratio:
  • Story Text: The German Constitutional Court resumed hearing on Wednesday (June 12) into charges that the ECB's Outright Monetary Transactions (OMT) programme is really a vehicle to fund euro zone member states through the back door, in violation of German law. The Bundesbank opposes the plan, which was announced by ECB President Mario Draghi last September.
    The German politician and member of Bavaria's Christian Social Union (CSU), Peter Gauweiler, is one of the plaintiffs.
    "The court very clearly said yesterday that it is not acceptable - according to the German constitution - if international organisations like the European Central Bank act outside their constitutional authorization," he told Reuters. "And the yesterday's hearing has shown how massively the European Central Bank has left the European legal framework which was specified by the treaties of the EU member states."
    More than 35,000 Germans filed complaints against the ECB's programme to buy up the debt of stricken southern euro zone members, claiming it violates the central bank's mandate for price stability and amounts to illegal back-door financing of governments.
    But although the ECB is based in Frankfurt, it is bound by European Union law, raising questions about whether the Karlsruhe-based court has jurisdiction over it.
    In his introductory remarks, court president Andreas Vosskuhle said this was "the most difficult legal question" facing the eight red-robed judges, whose rulings on euro zone bailouts have been closely watched by financial markets since the bloc's crisis broke out over three years ago.
    German Chancellor Angela Merkel said on Tuesday (June 11) her government would argue to the Constitutional Court that the European Central Bank is doing what is needed to stabilise the euro and that the euro zone's ESM bailout fund is important.
    The judges are not expected to reach a final ruling until after German parliamentary elections in September.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2013. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register