{"id":1349,"date":"2020-07-18T07:40:16","date_gmt":"2020-07-18T07:40:16","guid":{"rendered":"https:\/\/www.lexportateu.com\/?p=1349"},"modified":"2025-10-03T07:41:59","modified_gmt":"2025-10-03T07:41:59","slug":"absolutely-unsustainable-the-german-federal-constitutional-courts-ruling-on-the-public-sector-purchase-programme-pspp","status":"publish","type":"post","link":"https:\/\/www.lexportateu.com\/en\/absolutely-unsustainable-the-german-federal-constitutional-courts-ruling-on-the-public-sector-purchase-programme-pspp\/","title":{"rendered":"\u201eAbsolutely unsustainable\u201c \u2013 the German Federal Constitutional Court\u00b4s ruling on the Public Sector Purchase Programme (PSPP)"},"content":{"rendered":"\n<p>With its decision of 5 May 2020 (2 BvR 859\/15 ua) on the Public Sector Purchase Programme (PSPP), the German Federal Constitutional Court (<em>BVerfG<\/em>) not only has ruled on the legal question apparently being the subject matter of the legal proceedings, if the ECB by executing this programme on the purchase of public debt on the secondary market, as well as the ECJ by estimating the ECB\u00b4s behaviour as compatible with Union law in the case&nbsp;<em>Weiss<\/em>&nbsp;(EGJ, judgement of 11 December 2018, Case C-493\/17) has infringed the limits on the transfer of competence to the organs of the European Union laid down in the German Constitution. The BVerfG affirmed this infringement in very harsh words, (dis)qualifying the ECJ\u00b4s judgement in the preceding preliminary ruling as \u201eabsolutely unsustainable (par. 116) and \u201eobjectively arbitrary (par. 112)\u201c.<\/p>\n\n\n\n<p>The formal defendants in the proceeding before the BVerfG, the German Parliament (<em>Bundestag<\/em>) and the German Government (<em>Bundesregierung<\/em>) are set the task to use their best efforts to make the ECB (which was created as a Union organ independent from all political organs of the EU or the Member States, particularly because the former German Government insisted on it, vid. Art. 130 TFEU) prove within a very short time period of 3 months that while performing the monetary measures taken during the programme, it had proceeded to an examination of its proportionality being compliant with the legal criteria now established by the BVerfG.<\/p>\n\n\n\n<p>Certainly, the legal questions on monetary and fiscal policy underlying the BVerfG\u00b4s judgement do not affect LEXPORTATEU\u00b4s field of activity and consequently are not treated here. However it seems remarkable to us that in truth, not the German Parliament and Government were \u201ein the dock\u201c before the BVerfG in Karlsruhe, but rather the ECB and particularly the ECJ, even though in an implicit manner. Contrary to the usual way to proceed in a State under the rule of law, upon completion of the preliminary ruling initiated by the BVerfG itself in the Case&nbsp;<em>Weiss<\/em>, during the legal proceedings on the constitutional complaint, the ECJ was not given the opportunity to make any statements on the charges brought against it, nor has it been given the \u201clast word\u201d usually granted in condemnations of such historical significance. This casts a poor light on a Constitutional Tribunal that justifies its crushing verdict with the need to preserve inalienable principles of the rule of law.<\/p>\n\n\n\n<p>Not only in a procedural way the ECJ is deprived from the \u201elast word\u201c, but also in substance, because the BVerfG is explicitly overriding the binding force of rulings pronounced by the ECJ in preliminary rulings pursuant to Art. 267 TFEU, provoking a press release of the ECJ following the BVerfG\u00b4s judgement, rather uncommon in this kind of proceedings. In addition, the BVerfG questions fundamental pillars of the EU, such as the primacy of Union law and the ECJ\u00b4s construction monopoly with regard to the final interpretation of Union law.<\/p>\n\n\n\n<p>Although the BVerfG\u00b4s ruling does not have any immediate consequences for International company law and the law of corporate groups, its mediate consequential effects could turn out to be disastrous and are not yet predictable. Because both the German and the European organs are trapped in an indissoluble conflict of legal competence, which cannot be solved by legal means. Because neither are the German Parliament and Government enabled to openly ignore the BVerfG\u00b4s interpretation of the German Constitution, nor are the ECJ or the ECB able to follow the \u201cinstructions\u201d received from Karlsruhe. Citing the words of the BGH\u00b4s Presiding Judge&nbsp;<em>Meier-Beck<\/em>, this would not only end up in the end of the EU as a legally constituted community of European democracies, but furthermore from a political point of view intensify impressions in other Member States of a preferential treatment of the German institutions at the EU-level \u00e0 la \u201e<em>am deutschen Wesen soll Europa genesen<\/em>\u201c already made in the past, consequently lead to new disaffection similar to the Brexit and also inspire hostile tendencies towards the rule of law in the jurisdictions of other Member States, whose courts could refuse to follow the ECJ\u00b4s case law in whichever legal field, just by invoking principles laid down in its domestic Constitution.<\/p>\n\n\n\n<p>Consequently, it remains to be hoped for International company law that the conflict can be settled through cooperation in a face-saving way for all involved institutions. This must be achieved primarily by a revision of the Constitutional Court\u00b4s jurisprudence in a future constitutional complaint raised before it, as well as by the ECB by acting more transparently on the reasons which justify its monetary policy, it goes without saying without restricting its independence. At the end of the day, we cannot help feeling that the BVerfG intended primarily to put an end to an expansive monetary policy, but not to eliminate Union law or to disavow the ECJ.<\/p>\n\n\n\n<p class=\"has-text-align-right\">Florian Deck, 18. July 2020<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With its decision of 5 May 2020 (2 BvR 859\/15 ua) on the Public Sector Purchase Programme (PSPP), the German Federal Constitutional Court (BVerfG) not only has ruled on the legal question apparently being the subject matter of the legal proceedings, if the ECB by executing this programme on the purchase of public debt on [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1349","post","type-post","status-publish","format-standard","hentry","category-unkategorisiert"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>\u201eAbsolutely unsustainable\u201c \u2013 the German Federal Constitutional Court\u00b4s ruling on the Public Sector Purchase Programme (PSPP) - Lexportateu<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lexportateu.com\/schlechterdings-unvertretbar-das-urteil-des-bverfg-zum-anleihekaufprogramm-pssp\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u201eAbsolutely unsustainable\u201c \u2013 the German Federal Constitutional Court\u00b4s ruling on the Public Sector Purchase Programme (PSPP) - Lexportateu\" \/>\n<meta property=\"og:description\" content=\"With its decision of 5 May 2020 (2 BvR 859\/15 ua) on the Public Sector Purchase Programme (PSPP), the German Federal Constitutional Court (BVerfG) not only has ruled on the legal question apparently being the subject matter of the legal proceedings, if the ECB by executing this programme on the purchase of public debt on [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.lexportateu.com\/schlechterdings-unvertretbar-das-urteil-des-bverfg-zum-anleihekaufprogramm-pssp\/\" \/>\n<meta property=\"og:site_name\" content=\"Lexportateu\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-18T07:40:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-10-03T07:41:59+00:00\" \/>\n<meta name=\"author\" content=\"Florian Deck\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Florian Deck\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.lexportateu.com\/schlechterdings-unvertretbar-das-urteil-des-bverfg-zum-anleihekaufprogramm-pssp\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.lexportateu.com\/schlechterdings-unvertretbar-das-urteil-des-bverfg-zum-anleihekaufprogramm-pssp\/\"},\"author\":{\"name\":\"Florian Deck\",\"@id\":\"https:\/\/www.lexportateu.com\/#\/schema\/person\/ea804f789d39a9061105d08101f65f6e\"},\"headline\":\"\u201eAbsolutely unsustainable\u201c \u2013 the German Federal Constitutional Court\u00b4s ruling on the Public Sector Purchase Programme (PSPP)\",\"datePublished\":\"2020-07-18T07:40:16+00:00\",\"dateModified\":\"2025-10-03T07:41:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.lexportateu.com\/schlechterdings-unvertretbar-das-urteil-des-bverfg-zum-anleihekaufprogramm-pssp\/\"},\"wordCount\":830,\"publisher\":{\"@id\":\"https:\/\/www.lexportateu.com\/#organization\"},\"articleSection\":[\"Unkategorisiert\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.lexportateu.com\/schlechterdings-unvertretbar-das-urteil-des-bverfg-zum-anleihekaufprogramm-pssp\/\",\"url\":\"https:\/\/www.lexportateu.com\/schlechterdings-unvertretbar-das-urteil-des-bverfg-zum-anleihekaufprogramm-pssp\/\",\"name\":\"\u201eAbsolutely unsustainable\u201c \u2013 the German Federal Constitutional Court\u00b4s ruling on the Public Sector Purchase Programme (PSPP) - 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