BERLIN (GERMANY) – Changes in Germany’s top court are likely to make it less confrontational towards the European Central Bank in the wake of ruling about bond purchases, said sources.
Last month, the Constitutional Court gave the ECB three months to justify bond purchases under its flagship stimulus programme or lose the Bundesbank as a participant. This raised questions about the future of the euro.
While Berlin is likely to have the final word on whether the ECB’s justification is sufficient, the plaintiffs have signalled they could initiate legal action against new ECB stimulus plans, leading to more market turmoil.
However, there will be a change of guard at the German court in Karlsruhe on Monday.
A new judge will join a bench widely seen to have a narrow Eurosceptic majority. Astrid Wallrabenstein, who was nominated by the pro-European Greens, has suggested there should be a thaw in relations with the European Court of Justice (ECJ), which cleared the ECB’s plan.
She will replace Andreas Vosskuhle, president of the court whose term has expired. His role as president will go to Stephan Harbarth, a conservative lawmaker from 2009-2018.
“She is a lot more Europe-friendly than Vosskuhle,” said the first source, a constitutional law professor who is well connected at the court and knows Wallrabenstein. “So my forecast is that in future, such decisions like that on the ECB will no longer be taken.”
Wallrabenstein’s appointment could help pave the way towards a more conciliatory tone from the cour.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field