the stumbling block was the verdict of the Federal constitutional court of Germany. The 5 may have opposed the European Central Bank buying up government bonds of Eurozone countries. According to Deutsche Welle, the judge in Karlsruhe, recognize this program is partially contrary to the basic law of Germany, agreed: after the completion of the transition of the German Bundesbank should not take part in it. The Commission stated that the German government might have within two months to talk with Brussels about its move. If the arguments of Berlin does not seem convincing, against the Germans will be initiated by the unprecedented investigation that may result in even fines.
In fact, this dispute arose not yesterday. In February 2014, the Federal constitutional court of Germany first addressed in the European court of justice in Luxembourg to challenge the legality of the ECB’s programme of buying government bonds from the point of view of monetary policy. It was developed in response to the debt crisis that began earlier with the peripheral Eurozone countries, especially Greece and Ireland. The then head of the European financial regulator, the Italian Mario Draghi insisted that he has all powers in order to stimulate the economy and bring the inflation to a target of 2 percent. Meanwhile, the Germans were required to pay the highest contribution – almost 30 per cent in the European stability mechanism, which was to buy bonds. Subsequently, several prominent German personalities, including veteran of the Bavarian Christian social Union Peter Gauweiler and Berlin Professor Bernd Lucca, who founded the economic platform of the “Alternative for Germany”, has filed a lawsuit against the ECB, however, the court in Luxembourg found him insolvent.
the Long-standing conflict between Berlin and Brussels has escalated in the context of another story – with the release of the so-called “coronamento”. We are talking about bonds, designed to be one of the mechanisms to support the national economies of the EU countries affected by the pandemic. This idea has been warmly supported by Italy, Spain, France and other conditional of the “land of the South”, while the camp of “northerners” – Germany, Austria and the Netherlands – strongly oppose as potential donors. Earlier, the German political scientist Alexander Rahr admitted in an interview with “RG” that the question of a “new Marshall plan for Europe” can be not only a test of strength, but the reason for the deep division of the EU, which has high hopes for the potential of the German economy, which itself is preparing for a recession. According to forecasts of government experts, in the second quarter of this year, Germany’s GDP abbrwill utitsa 9.8 percent. While unemployment may face two and a half million Germans.
