European Central Bank – A bank with limited freedom – Süddeutsche.de

European Central Bank – A bank with limited freedom – Süddeutsche.de

The European Central Bank uses its independence differently than the Germans had imagined. But what should the bank that can so extreme affect the lives of citizens with their decisions?

By Marc Beise

No one is above the law – that is a core principle of the rule of law. A fundamental principle that citizens fought for centuries, defended, and have lost wiedererkämpft. No one is free to do what comes first to mind, no president, no chancellor, no constitutional protection, no administrative employee. Also, no central banker, one would think.

But on this principle the construction of the Euro-Union scratched with a European Central Bank, which is the influence of politics and the legislature largely removed. The independence of the central bankers expressed by the fact that only they can print money, regulate the money supply and determine interest rates, so that they take extreme impact on the lives of citizens.

The ECB uses its independence quite different as the presented in the introduction of the euro once the Germans. It does not only money expensive and cheap, it is on the verge of financing States and thus engage in political and economic game. The central bank and its powerful president Mario Draghi do the job of politicians, without having to face the judgment of citizens in elections.

ducking as a strategy

No one is above the law? The ECB already – because the rulers ducking, because the parliaments silent. The ECB thinks they have to fill the vacuum, and it does so far even with success: Draghi threat at the height of the euro crisis of 2012, if necessary to throw the money printing press and the purchase securities that were not for sale in the market, has the price decline of the Euro government bonds stopped. This week, the ECB will decide the purchase of bonds in a big way.

What is it about, understands the lay only in its infancy, and even experts are overwhelmed by the details. Even the ciphers of the ECB are calculated to obscure things: OMT – Outright Monetary Transactions – was the threat of 2012; QE – quantitative easing – called that which is to come now. The rulers take it all with, glad that they have to do anything. It’s high time that judges intervene.

This reputation, the Federal Constitutional Court heard, it has serious doubts as to the constitutionality of the OMT program expressed. Karlsruhe but turned to summon no European constitutional crisis, the first time the European Court of Justice. Meanwhile, Advocate General Pedro Cruz Villalón made a pretty wise judgment proposal on Wednesday.

The Advocate follows Karlsruhe is to limit the competence of the ECB’s monetary policy, it must not interfere in the financing of states. Nothing else would certainly Draghi say that will not tire of emphasizing that his ECB consider as part of its statutory mandate. This really check to assess and discard at the end if possible, the Advocate General is arrogates – so far – not to. Almost humbly, he says that courts should control the ECB “with a significant degree of restraint”, “as they specialization and experience are missing, which owns the ECB in this field.”

action must be justified

That would be the abdication of the law – if not the Spaniards had nachgeschoben some important limitations. The ECB must at such “unconventional” measure, therefore, in an emergency, respect the principle of proportionality. You must justify their actions accurately (and thus make verifiable in court). And she has to have so much time between speech and action that is “in fact, the formation of a market price for the government debt” possible.

This can be called in the sum of a mediating position between those of the ECB free want to give hand and those who see them are already beyond all rules. The federal judge will read it carefully and be reasonably satisfied, a battle of the courts is probably averted.

Nevertheless, the situation remains unstable. First, it is not said that the motley Europe judge panel of the line of the Advocate General follows. And even if that happens, is not initially gained much. At the end papers and judges are patient. In practice, the ECB must especially restrain himself

Draghi and his colleagues therefore have a great responsibility: Economical – because the policy of easy money is very highly dangerous.. Political -. Because many critics in Germany just waiting for the ECB acts more comprehensively

The battle for the euro is not over

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