German Constitutional Court decisions on EU anti-crisis measures

24-07-2014

In response to the financial crisis in the EU, a permanent crisis mechanism – the European Stability Mechanism (ESM) – was adopted by the euro area Member States. A number of cases, lodged with the German Federal Constitutional Court (BVerfG), aimed at blocking Germany's participation. The BVerfG has established four requirements for German participation in rescue packages and fiscal stability mechanisms: observance of the Bundestag's budgetary autonomy, prior consent of the Bundestag to participation in rescue packages, influence of the Bundestag on spending of funds and limited participation in large rescue packages.

In response to the financial crisis in the EU, a permanent crisis mechanism – the European Stability Mechanism (ESM) – was adopted by the euro area Member States. A number of cases, lodged with the German Federal Constitutional Court (BVerfG), aimed at blocking Germany's participation. The BVerfG has established four requirements for German participation in rescue packages and fiscal stability mechanisms: observance of the Bundestag's budgetary autonomy, prior consent of the Bundestag to participation in rescue packages, influence of the Bundestag on spending of funds and limited participation in large rescue packages.