Wednesday

19th Sep 2018

New German complaint aims to further delay bailout fund

  • The Constitutional Court in Karlsruhe has already pushed forward the bailout fund creation until September (Photo: Al Fed)

A new legal challenge filed with the German Constitutional Court on Monday (13 August) calls on judges to further delay their ruling on the eurozone's permanent bailout fund, pending a verdict by the EU's top court.

The Karlsruhe-based court had already said it would rule on 12 September on six legal challenges lodged against both the permanent, yet-to-be-set-up European Stability Mechanism (ESM) and the treaty on fiscal discipline signed by 25 EU countries.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

But a group of plaintiffs led by German professor Markus Kerber, who already had challenged the Greek, Portuguese and Irish bailouts for allegedly being in breach of EU law, on Monday asked the court to further delay its verdict because a similar complaint has been filed with the Luxembourg-based European Court of Justice.

"As long as the European Court of Justice [ECJ] hasn't taken a final decision on the incompatibility of these treaties, neither the Federal Constitutional Court nor the Federal President must take a decision," Kerber's group, Europolis, said in a statement on its website.

The court on Monday confirmed it had received the complaint, but refrained from commenting on whether it would accept it or not, Die Welt reports.

The prospect of a further delay on the €500-billion-strong ESM fund is already spooking investors, with the German Dax index falling on the news on Monday evening.

But legal experts are sceptical whether Karlsruhe will postpone its 12 September ruling.

"It is not likely that the Constitutional Court changes its schedule just because of a similar case in the European Court of Justice, because the ECJ is not a 'higher instance' (for the German court)," Joachim Wieland, a constitutional expert, told Handelsblatt Online.

"Both decisions are from a legal point of view on parallel tracks and are independent from one another," he added

The case in Luxembourg was filed by Thomas Pringle, an Irish MP, who challenged the ESM in Irish courts for being in breach of EU law.

The Irish Supreme Court, for its part, asked the ECJ for legal advice.

If accepted, the Luxembourg court would take at least "a few months" to rule on the matter, an ECJ spokesman told Financial Times.

The paper also noted that it would be for the first time if the German judges took the ECJ ruling into account, as they have never before asked this court for an opinion on EU-related matters.

EU parliament will not budge on office expenses

Hungarian centre-right MEP Livia Jaroka sticks to earlier decision: documents related to the minor reform of the expenses system, requested by EUobserver, should remain secret.

Sefcovic launches bid to be EU Commission president

Europe must have a robust foreign policy and nurture high-tech industries, Slovak EU commissioner Maros Sefcovic has said in his bid to succeed Jean-Claude Juncker as the next EU commission president.

News in Brief

  1. EU-Arab League summit proposed for February in Egypt
  2. Stop 'migration blame-game', Tusk tells EU leaders
  3. McDonald's Luxembourg tax deal 'compatible' with EU rules
  4. Danish bank CEO resigns in Russia scandal
  5. Germany seeks to join EU's eastern energy club
  6. UK universities top EU in Chinese ranking
  7. Poland seeks 'Fort Trump' US military base
  8. EU stops Irish case after Apple pays €13bn

Sefcovic launches bid to be EU Commission president

Europe must have a robust foreign policy and nurture high-tech industries, Slovak EU commissioner Maros Sefcovic has said in his bid to succeed Jean-Claude Juncker as the next EU commission president.

'Every group split' ahead of EU copyright vote

Political groups in the European Parliament are split about how to vote for a directive that would reform the EU's copyright regime - amid warnings that freedom of expression and creators' rights are at risk.

Stakeholders' Highlights

  1. NORDIC COUNCIL OF MINISTERSThe Nordic gender effect goes international
  2. NORDIC COUNCIL OF MINISTERSPaula Lehtomaki from Finland elected as the Council's first female Secretary General
  3. NORDIC COUNCIL OF MINISTERSNordic design sets the stage at COP24, running a competition for sustainable chairs.
  4. Counter BalanceIn Kenya, a motorway funded by the European Investment Bank runs over roadside dwellers
  5. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  6. IPHRCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  7. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs
  8. Mission of China to the EUJointly Building Belt and Road Initiative Leads to a Better Future for All
  9. IPHRCivil society asks PACE to appoint Rapporteur to probe issue of political prisoners in Azerbaijan
  10. ACCASocial Mobility – How Can We Increase Opportunities Through Training and Education?
  11. Nordic Council of MinistersEnergy Solutions for a Greener Tomorrow
  12. UNICEFWhat Kind of Europe Do Children Want? Unicef & Eurochild Launch Survey on the Europe Kids Want

Join EUobserver

Support quality EU news

Join us