European Commission President Ursula von der Leyen admitted the possibility of starting against Germany sanctions procedures for breach of EU law. The reason was the decision of the Federal constitutional court (FCC) in Karlsruhe at the European Central Bank (ECB). The head of the European Commission stressed that serious about this case and intends to carefully analyze.
the Fifth of may, the FCC recognized the European Central Bank buying government bonds of European countries does not correspond to German law due to the fact that the verification of the legality of ECB’s decisions were not connected, the German government and the Bundestag, writes TASS, citing Agency DPA. The court found that these actions deprived Berlin of the economic sovereignty without the consent of the authorities of Germany.
According to the court, the Federal Bank of Germany is prohibited after the three-month transition period to participate in the program of European Central Bank buying of government bonds, while the governing Council does not submit compelling evidence that such a practice is in its competence. The verdict of the court in Karlsruhe is contrary to the decision of the European court from 2018.
Previously, the European Commissioner for Economics, Paolo Gentiloni, speaking with the presentation of the spring forecast of the European Commission, said that the global economy due to pandemic coronavirus will be reduced in 2020 to three percent. He noted that this decline exceeds the damage from the financial crisis of 2008-2009 and the economic recovery will start only in 2021.
