The matter is complex and of high legal quality. But the Karlsruhe court’s ruling last week, the highest court German, concerns us. Because what is at stake is the very nature of Germany’s European engagement.
What is it about ? The policy pursued by the European Central Bank (ECB) since 2015, with the indirect redemption of the debt of the Member States. Karlsruhe judges contest the volume of public bond buybacks (Italy is not named but clearly concerned) which, according to them, no longer respects the balance between states, and they demand that the ECB justify its actions, under three months. A real political bomb, three times.
The first relates to the jurisdictional conflict with the European Court of Justice of the EU, which reacted by recalling its full legitimacy on strictly European matters; the second targets the ECB, which it weakens at a crucial moment when only debt can help respond to the crisis; the third is a political signal to German leaders to curb their possible temptation to pool financial efforts.
1,000 billion
In truth, the Karlsruhe court has put its finger on an unresolved point since the birth of the euro: the lack of political leadership. The monetary institution cannot do everything and the coronavirus crisis poses the problem even more dramatically.
Angela Merkel expressed it clearly, Wednesday, before the Bundestag: It’s up to me to respect this judgment
. Now is the time to act responsibly and wisely so that the euro can continue to exist.
And the Chancellor to continue: We must not forget what Jacques Delors said before the introduction of the euro: we need a political union, a monetary union will not be enough.
This moderate tone was judged positively yesterday at the Elysee. The debate progresses quickly
, they even say in the entourage of the President. Macron and Merkel have multiplied in recent days the long working sessions on the stimulus plan of a trillion. The Commission plans to publish its proposals on May 27. With two puzzles: how to avoid a North / South divide and convince Berlin to accept to pay subsidies and not only to guarantee loans? How to save the Commission’s initial green pact? The European Parliament will today vote on a resolution to this effect.
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