In the extreme, the euro rescue Germany cost 700 billion euros. If the Constitutional Court to have the courage to protect the Constitution and the citizens on the policy? By Gunnar Beck
The Federal Constitutional Court rules on 12 September on the constitutionality of the European Stability Mechanism (ESM) (Link: http://www.welt.de/108901862) . The European Court verifies that violates the euro bailout of EU law. The Constitutional Court has already made clear that a new Euro Treaty and further financial support to weaker euro-zone countries do not cancel the Budget Law of the Federal Parliament must.
The ESM can buy directly from euro zone countries to provide them with government bonds or loans. This allowed the ECB is not officially the EU Treaty. However, it emphasizes the federal government sees the ESM prior to a cap of 700 billion euros and limited the German share of it applies to "only" 190 billion euros.Apparently reading the Parties from politicians not or do not understand the details. The ESM is clearly illegal.
Germany adheres already representative
Contrary to assurances from Chancellor Merkel limited to Article 8 (5) of the ESM treaty is not the Fund's capital at the nominal value of 700 billion euros, but the output value. The ESM Board of Governors may decide in accordance with Article 8 (2), that the output value exceeds the nominal value. Thus, a large part of the ESM capital are issued at approximately twice the nominal value, the total liability of the ESM Member States would almost double.
According to Article 25, paragraph 2 Member States adhere solvent for shortfalls arising when another ESM Member fails to fulfill his payment obligation. Germany already liable vicariously, because Greece and Portugal can pay nothing.
Load up to 700 billion euros
According to Article 21, the ESM unlimited borrow and issue bonds in the capital markets.Thereby effectively condemning of Merkel "euro bonds" are introduced because all Member States are jointly liable for the bonds issued by the ESM, and this without credit and limit of liability. Is not excluded by Article 21 also show that the ESM from the ECB unlimited procured additional funds, the ECB will print out.
Because of the possibility leveraged state funding, the funding obligations of Germany in the event of the insolvency of other states and an increased output rate, the burden of Germany contrary to the representation of the Federal Government to rise to well over 190 billion euros - in extreme cases, to more than 700 billion euros.
The ESM has a banking license for unlimited credit
The impression of the misguidance of Parliament and the public by the German government condenses upon further consideration, so the discussion of whether the ESM should receive a banking license. According to Article 32 (9) of the ESM needs no licensing as a credit institution, nor to borrow money on the financial markets.
A banking license, he has almost already with "on board". As a "bad bank", the ESM can directly procure and unlimited credit with the bank. Article 19 also permits without treaty change already the rescue of insolvent banks.
Immunity and confidentiality
The Federal Constitutional Court has declared that no further aid may be issued without parliamentary approval. According to Article 4 (4) of the ESM Board of Governors may authorize, on the recommendation of the Commission and the ECB, emergency financial assistance. Is the German Council member without parliamentary scrutiny, it enjoys absolute immunity under Article 35, while even broader ESM Council decisions under Article 32 are not justiciable.
ESM members are also subject to a lifelong duty of confidentiality. Like the ECB president must therefore be responsible in relation to their duties, not for violations of the law, they mention only.
ECB President Draghi and breach of contract bond purchases
By the ESM treaty could increase the liability for debts of Germany ailing euro-zone countries to 700 billion euros, together with existing guarantees and loans according to figures by the Ifo Institute in Munich even on a half trillion euros. That would be not less than twice or four times the German federal budget. The budget autonomy of the German Parliament would thus itself repealed in part losses.
The EU treaties prohibit state funding ban on the printing press and the governments sale of government bonds to the ECB. The ESM is now permitted, what the ECB is prohibited in the least by the Treaties: buy government bonds directly to grant state credits and save failing banks.
ECB President Draghi has already announced that he would take bond purchases by the ESM in order to justify that the ECB would not be bound by restrictions of Article 123 . Contract offense are already more than 40 billion euros of Greek government bonds in the ECB's balance sheet, 100 to 150 billion slumber there as security for bank loans. Refuses details on the composition and credit of other balance sheet items, Draghi publish.
ECB policy will accelerate inflation
The ESM treaty communitarised the national debt through direct grants, guarantees, or ESM project bonds and possible controlled via the ESM ECB loans. There is no ceiling for this Community debts - a breach of the "no bail" principle of the EU Treaty.
The ECB's policy of subsidized government financing through the printing presses will sooner or later joined by money growth accelerated to a depreciation of the euro, inflation. The ECB President "lirafiziert" so the euro.
Basis of the nation and the rule of law is questioned
The ESM Treaty establishes a system by which protected by immunity ESM bankers over large sums of national tax dollars and be able to bypass the control of national parliaments. Activities and the Denver School Communities Tung violates the constitution as against ESM EU treaties.
ESM is the once in power, the basis of the nation and the rule of law is called into question: the Budget Law of the Federal Parliament and its ability to determine through tax and spending policies, the living conditions of the population significantly. Yet hardly anyone expected that bring the Supreme Court or the Court of the ESM to case, only slight corrections are considered feasible.
It would be a constitutional tragedy, when the Constitutional Court if clearly not legal summons the courage to protect the Constitution and citizens against the "great political coalition." Yet law is always a continuation of politics by other means.
The author teaches EU law at the University of London, working as a barrister and is a former legal adviser to the EU's Committee of the House of Commons
Source:http://www.welt.de/debatte/article108947819/ESM-verstoesst-gegen-Gesetz-und-EU-Vertraege.html