The European Commission announced that an official notification was sent and legal proceedings were initiated on the grounds that the German court’s decision last year that the ECB bond-buying program would be contrary to German law if it could not be proven that it was carried out for justifiable reasons.
In the statement, it was noted that the notification was sent to Germany because it violated the basic principles of EU law such as the primacy, autonomy, validity and application of union law and did not respect the jurisdiction of the European Court of Justice.
The ECB purchased more than 2 trillion euros in bonds from the markets as part of its asset purchase program, which started in 2015.
The application in question was heavily discussed in Germany, and a group of politicians and academics initiated legal proceedings against the program.
The European Court of Justice, the EU’s highest court, ruled in 2018 that the ECB bond-buying program was legal. Noting that the program in question entered the monetary policy area of EU countries using the euro currency, the court decided that the implementation was proportional.
On May 5, 2020, the German Constitutional Court decided that if the ECB bond-buying program could not be proven to be carried out for justified reasons, it would be against German law.
The court, which gave the ECB 3 months to explain the reasons for the program in question, stated that otherwise the German Central Bank would not be able to participate in the program.
The European Court of Justice announced on May 8 that it is the sole authority to decide whether an EU institution has acted in violation of union laws, and that national courts must fully implement EU law.
The process of violating the law within the EU structure is initiated by the EU Commission when a member state violates EU laws. At the end of the process, heavy fines can be imposed on the country in question.
After this stage, Germany must give an official response to the Commission within 2 months.
If the answers of Germany are not found satisfactory, the process is transferred to the European Court of Justice.