Gauweiler and Others (Judgment) [2015] EUECJ C-62/14 (16 June 2015)

Gauweiler and Others (Judgment) [2015] EUECJ C-62/14 (16 June 2015)

A programme such as the OMT, as described in the ECB press release of 6 September 2012, falls within the scope of monetary policy under EU law, is proportionate to its objectives, and does not violate the prohibition of monetary financing under Article 123(1) TFEU, provided sufficient safeguards are implemented to prevent circumvention of that prohibition.

Citation
[2015] EUECJ C-62/14
Parties
Respondent: Deutsche Bundesbank; Respondent: Bundesregierung (Federal Government); Respondent: Deutscher Bundestag (Lower House of the German Federal Parliament); Applicants: Applicants (various individuals and groups, including Fraktion DIE LINKE im Deutschen Bundestag)
Jurisdiction
European Union
Judgment Date
16 June 2015
Procedural Posture
Preliminary Ruling (cjeu) / Judgment on Reference From Bundesverfassungsgericht
Outcome
Request for preliminary ruling declared admissible; OMT programme as described is compatible with EU law, subject to safeguards.
Legal Topics
ECB Powers, Monetary Financing Prohibition, Proportionality, Judicial Review of EU Acts
EU Law Constitutional Law Monetary Policy ECB Powers Monetary Financing Prohibition Proportionality Judicial Review of EU Acts

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Parties

Deutsche Bundesbank

Respondent

Bundesregierung (Federal Government)

Respondent

Deutscher Bundestag (Lower House of the German Federal Parliament)

Respondent

Applicants (various individuals and groups, including Fraktion DIE LINKE im Deutschen Bundestag)

Applicants

Procedural Posture

Preliminary Ruling (cjeu) / Judgment on Reference From Bundesverfassungsgericht

Legal Issues

  1. 1 Whether the ECB's OMT decisions exceed its monetary policy mandate under Articles 119, 123, 127 TFEU and Protocol No 4
  2. 2 Whether the OMT decisions violate the prohibition of monetary financing under Article 123 TFEU
  3. 3 Whether the OMT decisions infringe the principle of proportionality

Ratio Decidendi

A programme such as the OMT, as described in the ECB press release of 6 September 2012, falls within the scope of monetary policy under EU law, is proportionate to its objectives, and does not violate the prohibition of monetary financing under Article 123(1) TFEU, provided sufficient safeguards are implemented to prevent circumvention of that prohibition.

Court Disposition

Request for preliminary ruling declared admissible; OMT programme as described is compatible with EU law, subject to safeguards.

Orders

  • Articles 119, 123(1), 127(1) and (2) TFEU and Articles 17 to 24 of Protocol No 4 permit the ESCB to adopt a programme for the purchase of government bonds on secondary markets, such as the OMT, provided implementation includes sufficient safeguards to prevent circumvention of Article 123(1) TFEU.