The European Central Bank’s (ECB) bond purchase program — possibly the most effective anti-crisis tool yet — is compatible with EU law. Proceedings against the ECB’s bond purchases have been brought both before the General Court of the Court of Justice of the European Union and the German Constitutional Court (BVerfG) in distinct proceedings. While the General Court has dismissed the action for annulment based on admissibility reasons, the BVerfG has, for the first time in history, referred the case to the Court of Justice of the EU. This Article argues that the ECB bond purchase program is compatible with EU law because it is founded on monetary policy. Furthermore, the ECJ is likely to exercise judicial restraint based on precedent, and the amount of discretion afforded to the ECB in pursuing its mandate.
The Compatibility of the ECB’s Sovereign Bond Purchases with EU Law and German Constitutional Law, 39 Yale Journal of International Law Online 15-31 (Fall
2013)
