The Legal and Economic Questions posed by the German Constitutional Court’s decision in the Public Sector Purchase Programme (PSPP) Case

Abstract

This paper seeks to explore the PSPP decision of the German Constitutional Court and its effect on the monetary policy decisions taken by central banks. It begins by exploring the decision and its effect in Germany, together with its wider implications for the European Monetary Union before moving onto consider the standard of review that should be applied by the Courts when they are required to review central banks actions. Conclusions are reached to show that any standard of review should be limited because of the unique economic and political circumstances in which central bank decision making takes place. Keywords: Central Banking; Judicial Review; Proportionality; European Law; European Monetary Union.

Legal Policy of Constitutional Complaints in Judicial Review: A Comparison of Germany, Austria, Hungary, and Indonesia

“…The GFCC delivered a landmark ruling on May 5, 2020, of constitutional significance with implications for the specific policy areas concerned and in the wider context of Member States' cooperation in the European Union (EU) and European integration, including European Monetary Union. 39 The constitutional complaint related to the Court of Justice of the European Union (CJEU) decision 40 on December 11, 2018 (Weiss and Others, C-493/17). For the first time, it held that a measure of a European Union institution is not in line (unconstitutional) with the European order of competencies and thus not binding on Germany.…”