The European Commission on Wednesday served a legal notice to Germany for infringement of European Union (EU) law by its Karlsruhe based-constitutional court and to ensure that the integrity of its law is preserved.
The rift that started between President of the European Commission Ursula von der Leyen and German Chancellor Angela Merkel could escalate quickly and result in financial penalties for Germany.
The conflict began on May 5, 2020, when the German court passed a judgement that declared European Central Bank’s bond-buying program illegal as per the national law unless the central bank justified the bond-buying program. According to Politico, the court also ruled that if the bank fails to justify its bond-buying program within three months, then its participation in the program will be cancelled. In its ruling, the court stated: “As these decisions lack sufficient proportionality considerations, they amount to an exceeding of the ECB’s competencies.”
According to the European Union, this judgement violated the “fundamental principles of EU law”. As per Article 267 of the Treaty on the Functioning of the European Union, the judgements have violated EU’s “principles of autonomy”, “the uniform application of Union law”, and “respect of the jurisdiction of the European Court of Justice.” Another German court had also disobeyed a judgement passed by the European Union’s Court of Justice, and called out the judges for acting beyond their powers and also halted the implementation of the judgement in Germany.
The constant undermining of the EU court by the German courts raised serious concerns regarding rule of law and served as an example for other countries to question the EU’s authority. These rulings by the German courts set a dangerous precedent that gives more importance to national laws as compared to EU laws and poses a threat to the bloc’s integrity.
Christian Wigand, the commission’s spokesperson, said, “The judgement constitutes a serious precedent both for the future practice of the German constitutional court itself and for the supreme and constitutional courts and tribunals of other member states.”
The European Commission has given Germany two months to respond to its legal notice. If Germany fails to respond within this stipulated time period, the matter will be sent to the EU’s Court of Justice for the final judgement. If it fails to comply with the judgement of the court, Germany faces the risk of financial penalty.
The Commission has also asked all its members’ states for a feasible solution to the persisting problem and ensure that the solution respects the integrity and supremacy of EU law.
European Commission Launches Legal Action Against Germany to Preserve EU Law
The commission has given Germany two months to respond to its legal notice
June 10, 2021
SOURCE: BLOOMBERG