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Germany's Constitutional Court Goes Rogue

Global Warming - distance between America and Europe is steadily increasing.
by Oui on Wed May 20th, 2020 at 01:39:09 PM EST
Excellent and detailed analysis of the decision:  Last two paragraphs:
But the problem runs deeper still. The Federal Constitutional Court will police Germany's relations with the EU, monitor ongoing and future ECB policies, and most likely block any attempt to introduce eurobonds, however powerful the policy case for them might be. And, because the Basic Law, adopted in response to the horrors of the Nazi regime, protects the principle of democracy with an "eternity guarantee," not even a constitutional amendment can resolve this impasse.

And now that court - heedless of the political consequences for Europe and Germany, contemptuous of the rule of law within the EU, and cavalier about its own limitations - risks sacrificing the euro and possibly even the EU by clamping down on the ECB's efforts to manage the euro. An institution that, by design, no one governs is out of control.



Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu May 21st, 2020 at 11:04:22 AM EST
[ Parent ]
If/when AfD comes to lead a government we will find out just how eternal is that guarantee. "Eternal guarantee" are just two high sounding words. Constitutions have been changed before. Or, more likely, the part about respecting democracy will just be ignored.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri May 22nd, 2020 at 04:16:19 PM EST
[ Parent ]


Global Warming - distance between America and Europe is steadily increasing.
by Oui on Thu May 21st, 2020 at 02:58:29 PM EST
[ Parent ]
It's time to choose what kind of EU we want for the 21st Century"

One without Germany perhaps. Or is that a denkverbot?

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri May 22nd, 2020 at 04:23:56 PM EST
[ Parent ]
Best choice the six founding members with a few democracies - if there are any in former dictatorships and the countries in New Europe. The latter  countries prefer to be weaponized by the only Superpower (Trump&Co) and become a separate US of E. These states will be a nice buffer zone for Western Europe. Ask NSC advisor to Joe Biden - Tony Blinken. Will save Brussels a lot of subsidies/funding corruption.

Global Warming - distance between America and Europe is steadily increasing.
by Oui on Fri May 22nd, 2020 at 05:31:53 PM EST
[ Parent ]
The original six include Germany, so that is no solution. Yet France is wedded to the idea of an alliance with Germany. From Mundell's perspective of an optimal currency area France, Italy, Spain, Portugal, Belgum, Greece and the Mediterranean island states would make an optimal currency area. As would Netherlands, Germany, Austria, Denmark and Finland.

But establishing two such currency areas would disrupt an existing dynamic of the northern states feasting off of the misery of the southern states while benefiting in trade with the rest of the world by having the value of the Euro depressed by the southern states. So it is unlikely to be accepted by the northern states. And France is one bridge between Iberia and Italy with the Mediterranean being the other and the bridge between Greece and the island states as well. I do not know if it is possible for such a southern union to form without France.  
 

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue May 26th, 2020 at 05:36:13 PM EST
[ Parent ]
The folly or, perhaps, the 'mindblock'/'denkverbot' of the existing arrangement is the idea that the southern states BENIFIT from the strength that Germany's Deutchmark brought to the Euro when it joined. My view is that this is anything but a benefit.


"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue May 26th, 2020 at 05:40:18 PM EST
[ Parent ]
At the beginning Italy was able to borrow at cheaper rates than with the lira, so took advantage of that (to its eternal detriment) as it was misspent on bridges to nowhere, pharaonic nothingburgers which fattened 'certain' pockets but brought zero-to-few benefits to the average Joe, who suddenly had to pay double for coffee at the bar and navigate new roundabouts sometimes every hundred metres (while viaducts and bridges were woefully under-maintained and millions allocated by the EU went unspent because no-one could organise how 'best' -hint, hint- to do it).
To a great degree Italian malfeasance turned the Euro into the poisoned chalice it became, and helped form the negative image now used as cudgel by the 'frugal' nations.
 

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
by melo (melometa4(at)gmail.com) on Sat May 30th, 2020 at 12:43:01 AM EST
[ Parent ]
Berlusconi was in charge much of that time, no?


"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun May 31st, 2020 at 06:35:18 PM EST
[ Parent ]
For France it is the Franco-German alliance. All else is optional.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Fri May 22nd, 2020 at 05:41:47 PM EST
[ Parent ]
Au contraire, the Franco-German axis is merely the springboard from which all major initiatives in Europe tend to start and develop. At least that's Macron's view, but he's not alone in this; his predecessors were much the same and many French pols share the same view.

EU history also tends to follow that narrative: the big countries agree on something and the other EU countries are brought on board later on. Not the most democratic process, but this is how it has worked many times.

Besides France and Germany, there used to be another country with a population over 60 millions and a GDP in the top 5 WW, but it seems to have drifted away.

by Bernard on Fri May 22nd, 2020 at 08:15:51 PM EST
[ Parent ]
It was never the most reliable of allies...

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Fri May 22nd, 2020 at 10:32:42 PM EST
[ Parent ]
France's dedication to Germany is what is preventing a realignment - unless Germany leaves the EuroZone unilaterally. This doubtless springs from the trauma of France being defeated in two world wars. But how likely is it that a breakup with Germany leaving the EuroZone would lead to a war today. Germany cannot even bring itself to fund its military adequately.


"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun May 24th, 2020 at 12:33:00 AM EST
[ Parent ]
Professor Pistor's analysis is dead on.  There is a doctrine in law called "collateral attack", i.e. a court reviewing a decision of a court it has no reviewing authority over.  It is always presented in a negative form, something a court does NOT get to do.  A court can only decide that the other court has no precedential authority over it (the other court has no review authority over the present court) and so the other court's decisions are not binding precedent.  While the Constitutional Court ultimately concluded the CJEU's 2018 ruling was not binding, it did so by reviewing that ruling and determining it to be ultra vires.  That is textbook collateral attack.  The Constitutional Court gives no authority for its conducting such a review, so we're left to infer that it believes the EU treaties somehow confer on it the power to review the CJEU's decisions.  Which they clearly do not.  I therefore believe the EU and its other member states would be wholly justified in classifying the Constitutional Court as the court that was behaving ultra vires and commence a broad attack on the decision.
by rifek on Sun May 31st, 2020 at 10:40:10 PM EST
[ Parent ]

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