In one relatively brief decision, the court struck a double blow. It asserted the power of itself, a national institution, to overrule the European Court of Justice on an EU-level issue, and it denied the political independence of the European Central Bank. [...]
The first was the conviction that there existed a coalition with the centre-right European Peoples’ Party for greater EU integration within a progressive framework. That conviction was closely related to a second—that concessions by the centre-left on fiscal rules would gain proportionate concessions from the centre-right on social protection. [....]
While the German constitutional court operates independently of the federal government, the recent decision by the former sets limits to the decisions the latter can make. These bind all the more because the decision affirms the longstanding opposition of the Bundesbank to ECB monetary-expansion programmes—the appropriateness of which the ruling explicitly mandates the Bundesbank to assess. [...]
Methods to confront this dilemma fall into three categories, increasingly radical in nature: 1) devise schemes to bypass treaty rules, 2) take measures which openly challenge the treaties or 3) break with the EU. I exclude the last, since it would create for any such government unmanageable short-term problems exactly when a solution is needed.
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