EU could open legal case against Germany over ECB bond-purchases ruling: Commission

Canada

FILE PHOTO: European Commission President Ursula von der Leyen speaks during a news conference after a video conferenced EU summit with European heads of state to discuss measures related to the coronavirus disease (COVID-19), in Brussels, Belgium April 23, 2020. Olivier Hoslet/Pool via REUTERS/File Photo

BRUSSELS (Reuters) – The European Commission could open a legal case against Germany over a ruling by the country’s constitutional court that the European Central Bank had overstepped its mandate with bond purchases, the EU executive arm said on Sunday.

The German court in Karlsruhe last Tuesday gave the ECB three months to justify its flagship euro zone stimulus scheme or said the Bundesbank might have to quit it.

In response, the European Union’s top court – which had previously gave its green light to the ECB scheme – and the European Commission have said that EU law holds precedence over national regulations. They added that the European Court of Justice’s rulings were binding for courts in the 27 member states of the bloc.

On Sunday, Commission President Ursula von der Leyen went a step further, saying the EU executive might end up opening a legal case against Berlin.

“The recent ruling of the German Constitutional Court put under the spotlight two issues of the European Union: the euro system and the European legal system,” she said in a statement.

“We are now analysing the ruling of the German Constitutional Court in detail. And we will look into possible next steps, which may include the option of infringement proceedings,” she said.

Infringements are legal cases the Commission can bring before the Luxembourg-based Court of Justice of the EU, if the Brussels-based executive deems a member state is violating EU law. The court can order a nation to make amends, or face hefty fines.

Reporting by Gabriela Baczynska; Editing by Pravin Char

Products You May Like

Articles You May Like

Prepare to study in Canada
Study permit: Who can apply
Canada’s Start-Up Visa: How Much Money Do I Need?
Let In More Construction Trades Helpers, Business Groups Tell IRCC
Yellowknife Conference Discusses Boosting Francophone Immigration 
Canada To Welcome Refugees From Tanzania and Mexico Through Economic Mobility Pathways Pilot
Prince Edward Island Issues 122 Canada Immigration Invitations In New PNP Draw

Leave a Reply

Your email address will not be published. Required fields are marked *