Markus Kerber, a professor of political economy at the Technical University of Berlin, said the French president would find his “beginner’s charm” has worn off among a sceptical German public.
“Macron has come to put Merkel in his pocket but he will not succeed,” Kerber told FRANCE 24, likening the French president’s pitch in favour of sweeping EU reform to a “new kind of French chauvinism”. “He presents his reforms in a very autocratic fashion and this does not please the German public,” Kerber added, noting that many other EU countries had deep misgivings about French attempts to broker a deal with Germany alone. The Netherlands and Scandinavian countries, in particular, have made it clear “that future reform of the Eurozone is not a matter which is going to be decided by Macron and Merkel“, Kerber said.
The outspoken reluctance of the ECB president to revise the perpetual crisis mode of monetary policy increasingly destabilises the Eurosystem
Once again Mr. Draghi and Monsieur Coeuré have won the debate over QE in the Governing Council. Contrary to what has been requested by the representatives of traditional hard currency countries, the Asset Purchase Programme (APP) will remain open-ended. Far more important is Draghi’s confirmation that only the net asset purchase will decrease from January 2018 onwards. (Read more …)
Through its decision to submit the QE program of ECB to a preliminary ruling by the European Court of Justice, the German Constitutional Court documents its substantiated doubts as to the compatibility of PSPP with a general prohibition of monetary public financing pursuant article 123 TFEU.
The German court qualifies the unbearable risks of the program which in case of its prolongation would violate the budgetary prerogatives of the German parliament. (Read more …)
Request for an injunction to allow the Bundesbank’s withdrawal from the APP-Programme
Despite the fact that the Eurozone economy is thriving and the price stability target of 2% has been reached, the ECB and the Eurosystem have continued to purchase bonds at a monthly rate of 60 bn Euros. This procedure poses unbearable risks: not only would 12 % of the PSPP/CSPP bonds be subject to default risk. The bonds purchased by the National Central Bank on behalf of the ECB would also be at risk. (Read more …)
On January 9th, the third yearly symposium on the European Banking Union was held under the title “TOO BIG FOR BAIL-IN? The first stress test for the European Banking Union.” Please find attached the major contributions. (more information)
On the contrary, its ruling reinterprets the ECJ’s decision and submits ECB’s OMT programme to stricter conditionality
Though formally accepting the ruling of ECJ on OMT which gave clearance to ECB’S OMT programme, the German Constitutional Court rules that Bundesbank is only allowed to implement the OMT programme if the volume of bond purchases is limited from the beginning and securities will be sold by the Eurosystem as soon as the fiscal emergency in the Eurozone state concerned is over. (Read more)
Constitutional complaint against the recent ECB policy
Since the publication of the technical features for the Corporate Sector Purchase Programme, the ECB has definitely given up its mask of monetary policy. Through the massive purchase of corporate bonds, countries with high debt level and deficits in competitiveness such as Italy, Spain and France are supposed to improve the financing conditions of public companies. (Read more)