In an article in the Financial Times, Hertie School Professor of European Law and Governance Mark Dawson, called a German Consittutional Court resolution blocking the country's ratification of the EU pandemic recovery fund “a serious legal challenge”.

The Court issued the resolution after a group of 2,200 eurosceptics filed a motion claiming EU plans to raise €750bn in debt for the recovery fund go against EU treaties and violate the German constitution. Their motion claims the fund is ultra vires, (unlawful) because the EU not allowed to raise debt itself, and says the fund also violates the German parliament's budgetary sovereignty.

The court smilarly threatened last fall to block the ECB’s purchases of German bonds. Dawson said in the FT that the court had been “backing itself into a corner for some time” and now “faces a choice between two very unattractive options”. “It can either follow through on the logic of its own precedents by rejecting the recovery fund, with disastrous policy consequences, or uphold the fund through creative judicial interpretation, but risk making itself look incoherent in the process,” he added.

Read the article in the Financial Times here.

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