{"id":3217,"date":"2014-02-07T09:41:43","date_gmt":"2014-02-07T09:41:43","guid":{"rendered":"http:\/\/www.jcm.org.uk\/blog\/?p=3217"},"modified":"2014-02-07T09:41:43","modified_gmt":"2014-02-07T09:41:43","slug":"what-are-the-implications-of-the-german-constitutional-courts-omt-ruling","status":"publish","type":"post","link":"https:\/\/jcm.org.uk\/blog\/2014\/02\/what-are-the-implications-of-the-german-constitutional-courts-omt-ruling\/","title":{"rendered":"What are the implications of the German Constitutional Court’s OMT ruling?"},"content":{"rendered":"

The ruling – which happened only in the last few minutes – likely means that, until the European Court of Justice has made a final ruling (which could take months\/years), the European Central Bank will be prevented from bailing out ailing sovereign bonds in EU member states – this OMT (“Outright Monetary Transactions<\/a>“) policy being one of the key factors in the recent improvements in Eurozone stability.<\/p>\n

There are a number of other potential medium-long-term implications, so expect much debate in the coming hours\/days.<\/p>\n

One of the most interesting, though, is this – pointed out on Twitter<\/a> by Shahin Vall\u00e9e, economic adviser to Herman van Rompuy:<\/p>\n

“Karlsruhe admits incompetences to judge compliance to EU treaty and establishes superiority of EU law over German one”<\/p><\/blockquote>\n

Meanwhile, others<\/a> are speculating that the decision to refer to the ECJ will likely necessitate a future treaty change to increase the ECB’s ability to act.<\/p>\n

All that is certain is that, for now, the spectre of Eurozone economic uncertainty has come back – and we don’t know how long for. It could be a matter of months, years – or just minutes, if someone in a position of sufficient authority is able to calm the markets with a clear enough vision of what’s next.<\/p>\n

All I know is that I’m going to be keeping a close eye on my Europe Opinion Twitter list<\/a> today, with the other eye on the markets, to see how jittery they get.<\/p>\n","protected":false},"excerpt":{"rendered":"

The ruling – which happened only in the last few minutes – likely means that, until the European Court of Justice has made a final ruling (which could take months\/years), the European Central Bank will be prevented from bailing out … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[60,13],"tags":[],"class_list":["post-3217","post","type-post","status-publish","format-standard","hentry","category-economics","category-eu"],"_links":{"self":[{"href":"https:\/\/jcm.org.uk\/blog\/wp-json\/wp\/v2\/posts\/3217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jcm.org.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jcm.org.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jcm.org.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jcm.org.uk\/blog\/wp-json\/wp\/v2\/comments?post=3217"}],"version-history":[{"count":1,"href":"https:\/\/jcm.org.uk\/blog\/wp-json\/wp\/v2\/posts\/3217\/revisions"}],"predecessor-version":[{"id":3218,"href":"https:\/\/jcm.org.uk\/blog\/wp-json\/wp\/v2\/posts\/3217\/revisions\/3218"}],"wp:attachment":[{"href":"https:\/\/jcm.org.uk\/blog\/wp-json\/wp\/v2\/media?parent=3217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jcm.org.uk\/blog\/wp-json\/wp\/v2\/categories?post=3217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jcm.org.uk\/blog\/wp-json\/wp\/v2\/tags?post=3217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}