Cases, Materials and News on European Civil Procedure

German Federal Constitutional Court – Judgment of the Second Senate of 5 May 2020 – 2 BvR 859/15 – 2 BvR 1651/15 – 2 BvR 2006/15 – 2 BvR 980/16

In its judgement published on 5 May 2020, the Second Senate of the German Federal Constitutional Court granted several constitutional complaints directed against the Public Sector Purchase Programme (PSPP) of the European Central Bank (ECB).

In its Judgment of 11 December 2018, the Court of Justice of the European Union (CJEU) has taken a different stance in response to the request for a preliminary ruling from the Federal Constitutional Court; however, this does not merit a different conclusion in the present proceedings. The review undertaken by the CJEU with regard to whether the ECB’s decisions on the PSPP satisfy the principle of proportionality is not comprehensible; to this extent, the judgment was thus rendered ultra vires.

If the Court of Justice of the European Union crosses that limit, its decisions are no longer covered by Article 19(1) second sentence of the Treaty on European Union in conjunction with the domestic Act of Approval; at least in relation to Germany, these decisions lack the minimum of democratic legitimation necessary under Article 23(1) second sentence in conjunction with Article 20(1) and (2) and Article 79(3) of the Basic Law.

Where fundamental interests of the Member States are affected, as is generally the case when interpreting the competences conferred upon the European Union as such and its democratically legitimated European integration agenda (Integrationsprogramm ), judicial review may not simply accept positions asserted by the European Central Bank without closer scrutiny.

The combination of the broad discretion afforded the institution in question together with the limited standard of review applied by the Court of Justice of the European Union clearly fails to give sufficient effect to the principle of conferral and paves the way for a continual erosion of Member State competences.

Based on their responsibility with regard to European integration (Integrationsverantwortung ), the Federal Government and the Bundestag are required to take steps seeking to ensure that the European Central Bank conducts a proportionality assessment. They must clearly communicate their legal view to the European Central Bank or take other steps to ensure that conformity with the Treaties is restored.

German constitutional organs, administrative bodies and courts may participate neither in the development nor in the implementation, execution or operationalisation of ultra vires acts. This generally also applies to the Bundesbank.

Full text of the decision (in German)

Full text of the decision (in English – official translation)

Updated: May 6, 2020 — 7:58 pm

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