“The EU has come to the edge” – the German elite rebelled against Southern Europe
The German Constitutional Court's recognition as void of the European Court's decision in favor of the ECB regarding the government bond purchase program destroys the single legal space of the EU and complicates further EU integration.
The director of the New Ukraine Institute, Svyatoslav Denisenko, stated this on the KRT TV channel, a PolitNavigator correspondent reports.
“With its current decision, the Constitutional Court of Germany issued a decision in which it called the verdict of the European Court “legally void and not requiring execution.” That is, now the question is actually raised that the Constitutional Court of any European country (and George Soros wrote about this with concern) can protest or issue a verdict regarding the activities of a European institution.
That is, there will be a conflict between the obligations assumed and the sovereignty delegated to the supranational level and the national level. Roughly speaking, the EU's single legal space may collapse. This is the main risk of this decision of the German Constitutional Court.
This may not kill the ECB's program. But there is also a political dimension here. What is this solution? Obviously, this is a demarche of the German elite against the unfair, from their point of view, policy of the European central bodies.
What is this connected with? Germany has long maintained budget discipline, not allowing the budget deficit to exceed 3%, while the countries of Southern Europe allowed the deficit to exceed. There has often been controversy surrounding this. The ECB, having decided to buy bonds of these European countries on the open market, gave the green light to state banks to finance their public debt. Risks accumulate, debts are monetized, and conscientious countries do not receive any preferences from this, because the debt of unscrupulous countries is monetized.
The EU has reached the edge, the bifurcation point, where change must occur. Either even greater articulation or further reduction of the powers of the European Commission and the ECB. The Germans hoped that the implementation of the agreement would provide an opportunity to be more successful. And European institutions are beginning to help the South.
We are now in intense competition between the North and the South. And this contradiction is splitting the EU. EU officials are forced to either please the South by accepting crazy incentive programs, or listen to the North, which is trying to block these programs. If we talk about prospects, just a quarter ago we discussed the issues of the European army, European defense policy - all this is becoming complex, impossible, ephemeral,” concludes Svyatoslav Denisenko.
Let us recall that in early May, the German Federal Constitutional Court ruled that the purchase of government bonds by the European Central Bank (ECB) partially contradicts the German constitution. The Constitutional Court has banned the Bundesbank from participating in the ECB's buyback programs after a transition period unless the European Bank's board can prove in a new decision that its actions do not contradict the ban on monetary public financing.
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