Volker Wieland: Federal Constitutional Court has strengthened the ECB‘s independence

According to Prof. Volker Wieland, the Federal Constitutional Court‘s judgment regarding the bond purchases of the European Central Bank has strengthened the independence of the central bank. In an opinion piece in the German financial daily „Handelsblatt“, Wieland said that neither the central bank‘s independence nor the primacy of price stability were damaged by the judgment.

In May, the Federal Constitutional Court judged that the ECB was to explain the proportionality of the government bond purchases under the PSPP program until August 5. Otherwise the Bundesbank was not allowed to continue bond buying.

Wieland argued that governments and central banks had to work in unison in the corona crisis. Therefore, in his view, by pointing out fiscal side effects of the bond purchases, the court had strengthened the ECB‘s independence. 

Handelsblatt: „Das Bundesverfassungsgericht hat die Unabhängigkeit der EZB gestärkt“