Germany flagTC

German Court Agrees OMT Complies With Law

The challenge for German judges was to determine if the OMT can be seen as monetary financing of governments or not, banned in EU treaties or not. The Constitutional Court in Karlsruhe has ruled on Tuesday the ECB’s 2012 bond-buying plan is legal. Ifo President Clemens Fuest has, however, has critisised the OMT ruling. “That is a shame because it is obvious that the OMT programme primarily pursues the fiscal goal of preserving highly indebted states’ access to credit”.

No Picture

Karlsruhe, ECB’s OMT or the turn of the screw

MADRID | By Luis Martí | Each time the monetary union takes a step forward, German individuals and/or civil or political groups file a case with the Constitutional Court in Karlsruhe. So far, the Court has sanctioned that German governments were correct in accepting obligations emanating from Maastricht or the Lisbon Treaty, for example, but at the same time, it has also turned the screw on the Berlin executive by setting more and more strict limits to their freedom of action, by requiring –for instance- higher levels of co-decision with the legislative organs.