The German Constitutional Court blocks the president’s signature on the Recovery Fund
Today comes the news that the German Constitutional Court has blocked the signing by the President of the Republic Steinmeier of the Recovery Fund, which was approved last Thursday by the Budestag.
The urgent decision prevents the president from making the parliament's decision operational, even if it is later ratified by the Bundesrat. The reason for the blockade is the appeal of the “Bündnis Bürgerwille”, the Citizens' Alliance of AfD leader Bernd Lucke who opposes the Recovery Fund on the basis that the economic obligation for German citizens is uncertain and potentially very high.
According to the applicants, the Recovery Fund constitutes a form of unpredictable debt for the German treasury, precisely due to the possibility that one or more countries will not be able to repay this debt, making it burden on others, in a situation of mutuality. . Therefore this uncertainty of the cost would make the Recovery Fund unapproved, according to the German constitutional rules.
Unfortunately, we are facing a dead end situation: there can be no Commission debt, therefore common, without an indirect form of guarantee by the German states, starting with the strongest. If Germany were to withdraw from the fund because of its Constitutional Court, an essential column in support of the debt itself would be missing and the whole scheme built up to now would be blown up.
Several times we have warned you against thinking that the RF and RRF were a done thing, as the Italian media have always communicated to you. This is not the case, and Germany is not even the biggest obstacle.
We will soon know what the German constitutional report will be.
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The article The German Constitutional Court blocks the president's signature on the Recovery Fund comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-ccorte-costituzionale-tedesca-blocca-la-firma-del-presidente-sul-recovery-fund/ on Fri, 26 Mar 2021 16:41:49 +0000.