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Danke. nothing there which shows Eurobonds as unconstitutional, unless the Bundestag is not involved on a case by case basis.

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin
by Crazy Horse on Mon Sep 12th, 2011 at 07:19:13 AM EST
[ Parent ]
But involving the Bundestag on a case-by-case basis would be akin to giving California veto powers over the US federal deficit (or Beyern veto power over the German ditto). While technically possible, it would be unacceptable in so many ways it's not even funny.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon Sep 12th, 2011 at 07:42:12 AM EST
[ Parent ]
Also not all Eurobonds are created equal. The ECB issued ones could still be ok even if the jointly issued ones are out. And if it is legal for the ECB to act as market maker of last resort for state bonds in the secondary market...
by generic on Mon Sep 12th, 2011 at 08:21:23 AM EST
[ Parent ]
But is it legal for the ECB to issue bonds over the objections of the national parliaments? Let's not forget the ECB is owned by the 27 EU National Central Banks and each of these is "owned" by their respective Treasuries who capitalize their Central Banks and receive profits from them.

Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Mon Sep 12th, 2011 at 08:36:47 AM EST
[ Parent ]
But is it legal for the ECB to issue bonds over the objections of the national parliaments?

Yes.

Central bank independence, remember.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon Sep 12th, 2011 at 08:42:46 AM EST
[ Parent ]
Who issues Eurobonds, then? The Bundestag?

Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Mon Sep 12th, 2011 at 08:12:41 AM EST
[ Parent ]

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