20 August 2020
Why the Key to the Past Lies in the Future
A few days ago, Namibian President Hage Geinob rejected the German government’s offer for financial compensation for the 1904-07 genocide committed by the German colonial power in what was then called Southwest Africa against the Herero and Nama peoples. Germany refuses to consider the payment as an act of reparation, arguing instead that it would serve the “healing of wounds”. The Namibian side considers this inacceptable, insisting that such payments should not be considered a mere act of grace. I find this terminological dispute highly intriguing and telling. It prompts me to react with three responses. Continue reading >>
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30 May 2020
Constitutional Innovation, Democratic Stagnation?
The recovery plan of the Commission entitled “Next Generation EU” proposes a compromise that goes beyond the ominous lowest common denominator. With a package of EUR 750bn in total, comprising EUR 250bn in loans and the rest in grants, the Commission paves the way for both forward-looking public finance and constitutional innovation. The proposals are masterpieces of high-tech legal engineering. Again, European constitutional law evolves through crisis. Yet, again, it stands to reason how far the proposed instruments will shift the European Union towards enhancing solidarity and democracy. Continue reading >>
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06 April 2020
Corona Constitutional #4: Dies ist nicht die Eurokrise
Warum das Stichwort Corona Bonds so viele falsche Assoziationen weckt, und wie sie beschaffen sein müssten, damit auch Deutschland damit gut klarkommt: Max Steinbeis spricht mit MATTHIAS GOLDMANN über seinen Vorschlag und die damit verknüpften Chancen und Risiken. Continue reading >>05 April 2020
The Case for Corona Bonds
Governments, economists and intellectuals have called for common European bonds or increased own EU funds to address the recession induced by Covid19. Unfortunately, the German government, joined by the other members of the “Frugal Four” (Austria, Finland, the Netherlands), has categorically rejected to look into any such measures and favours using the ESM. This reaction created a déjà vu experience for citizens and governments of the heavily affected southern Member States of the EU. The proposal to use the ESM raises fears of another wave of austerity amounting to yet another lost decade for economic, social, and ecological development in Europe. Continue reading >>27 March 2020
Gestundete Zeit
Christine Lagarde verband die Ankündigung ihres ersten, moderaten Rettungspakets mit der Aufforderung an die Mitgliedstaaten, fiskalische Hilfen bereitzustellen. Die Märkte scheinen sich das Vertrauen in die Fiskalpolitik indessen abgewöhnt zu haben. Da starke geldpolitische Signale zunächst ausblieben, ging die Talfahrt weiter, bis Lagarde im zweiten Versuch in die Fußstapfen ihres Vorgängers trat und die Schleusen öffnete. Continue reading >>27 March 2020
Borrowing Time
When Christine Lagarde announced her first, moderate rescue package, she called upon member states to provide fiscal aid. But the markets showed to have lost confidence in fiscal policy. In the absence of strong monetary policy signals, the slide continued until Lagarde in her second attempt opened the floodgates. Continue reading >>
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12 December 2018
Alle Jahre wieder: die Geldpolitik der EZB vor Gericht
Nicht nur die Geräuschkulisse des Brexits absorbierte ein Stück weit die Aufmerksamkeit für das Urteil des Europäischen Gerichtshofs (EuGH) zur Zulässigkeit des Anleihenkaufprogramms der EZB. Denn immerhin entschied Luxemburg damit über eine der nach wie vor seltenen Vorlagen aus Karlsruhe. Dazu mag auch beigetragen haben, dass seit der Stellungnahme des Generalanwalts Wathelet nicht mehr damit gerechnet wurde, dass der EuGH der Europäischen Zentralbank (EZB) einen sprichwörtlichen Strich durch die Rechnung machen würde. Dennoch ist das Urteil aus einigen Gründen bemerkenswert. Continue reading >>02 March 2018
Cryptocurrencies: A ‘Sandbox for Regulators’?
By thinking loudly about putting the regulation of cryptocurrencies on the agenda of the G20, governments seem to have managed to keep the Bitcoin bubble from inflating into a systemic risk, so far. In a tongue-in-cheek sense, this behavior of supervisory and regulatory authorities can be described as the distributed ledger technology of financial supervision. It is distributed because it does not have a clear center. The G20 seems to be the common reference point for many actors, but it does not speak itself. It is like a shared code. Continue reading >>
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16 August 2017
Summer of Love: Karlsruhe Refers the QE Case to Luxembourg
It seems that the BVerfG has learned a lesson. Yesterday’s referral about the the European Central Bank’s policy of Quantitative Easing (QE) sets a completely different tone. It reads like a modest and balanced plea for judicial dialogue, rather than an indictment. Fifty years after the original event, a new Summer of Love seems to thrive between the highest judicial bodies. It shows no traces of the aplomb with which Karlsruhe presented its stance to Luxembourg three years ago. Continue reading >>14 March 2017