Germany's Federal Constitutional Court, heedless of the political consequences for Europe and Germany, has issued a ruling that risks sacrificing the euro and possibly even the European Union. An institution that, under Germany's Basic Law, no one governs is now out of control.
WASHINGTON, DC – On May 5, Germany’s Federal Constitutional Court ruled that the country’s government and legislature had violated the constitution by failing to monitor properly the European Central Bank, and in particular the bank’s public sector asset-purchase program (PSPP). The ruling was as tortuous as it sounds – a shot from the back through the chest and into the eye, as the German saying goes. And therein lies the problem.
WASHINGTON, DC – On May 5, Germany’s Federal Constitutional Court ruled that the country’s government and legislature had violated the constitution by failing to monitor properly the European Central Bank, and in particular the bank’s public sector asset-purchase program (PSPP). The ruling was as tortuous as it sounds – a shot from the back through the chest and into the eye, as the German saying goes. And therein lies the problem.