by Mike ‘Mish’ Shedlock
The German Constitutional court ruled against the ECB in a case regarding QE and bond purchases. The EU threatens Germany in response.
The heart of this battle goes to the Maastricht Treaty which formed the Eurozone. The Treaty says there will be no commingling of debts. And the German court ruled the ECB’s QE program overstepped its bounds and did just that.
However, the European Commission, led by Ursula von der Leyen, claims that EU law holds precedence over national regulations.
The European Court of Justice’s rulings are binding for courts in the 27 member states of the block says the EC.