Eurosceptic think-tank Europolis wants the domestic court to authorise a move to the European Court of Justice to assess the legality of the European Stability Mechanism (ESM), which the group claims restricts Germany’s ability to self-regulate.

Financial risks

According to the Financial Times, Europolis founder Professor Markus Kerber said the ESM presents Germany with substantial financial risks as well as threatening the authority of the Bundestag -- the national parliament -- over Germany’s budget. He also claimed that the ESM threatens ‘the German right of self-determination and the continued existence of German democracy’.
If the Karlsruhe-based court accepts the challenge, ratification of the ESM could be delayed by several months, awaiting a ruling from Luxembourg Court of Justice. The court has promised an interim decision by 12 September, recognising worries that delaying the implementation of the ESM could cause uncertainty and problems for eurozone countries struggling with increasing borrowing costs.

Unprecedented move

Should Germany’s Constitutional Court ask the ECJ to provide an opinion, it would provide an unprecedented move as the court has never before asked the ECJ to intervene in this way. According to the newspaper, nobody at the German court was able to comment.
This latest case comes shortly after an Irish move earlier this month to appeal to the ECJ for clarification regarding the ESM. Thomas Pringle, an independent member of Ireland’s Parliament, attempted to block the country’s adoption of the ESM on the grounds that it directly contradicts other EU treaties.While the supreme court in Dublin rejected Mr Pringle’s argument, it has requested legal guidance from the ECJ regarding the legitimacy of the ESM under EU law. An ECJ spokesperson told the FT that ‘we are considering the request’.