The Bundesverfassungsgericht PSPP Decision

: a blow to the European project

Abstract

The German Federal Constitutional Court sent shockwaves across Europe on 5 May 2020, when it declared a ruling by the European Court of Justice and ECB decisions as ultra vires and established a three-month transitional period for the ECB Governing Council to provide further justification in order to ascertain the legality of its measures, which the ECJ had already confirmed.The ruling is unprecedented and is likely to inflame the already existing tensions between national and European sovereignty. This is more so when the contested ECB programme amounts to the Public Sector Purchase Programme, an exceptional bond-buying measure launched in 2015 and deemed pivotal to combat the lasting effects of the European sovereign debt crisis. In times of increased spending by the EU, the schism between net contributors and beneficiaries is prone to show and is likely deepened by the asymmetric impact of economic crises on MS.As Europe faces the rise of nationalism, a public health crisis and a consequent economic crisis caused by the Covid-19 pandemic, the decision could not have come at a worse time. The Bundesverfassunsgericht’s ruling is one that underscores dissent at a time where solidarity is much needed. The decision constitutes a significant drawback to the consistency and effectiveness of the EU legal order as it openly defies well-established rules and foundations. Furthermore, it is likely to serve as an opportunity for illiberal regimes to push their anti-rule of law agenda as well as pave the way for the undermining of further exceptional ECB programmes such as the Pandemic Emergency Purchase Programme.

Date of Award	28 Jul 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Miguel Poiares Maduro (Supervisor)