The ruling on the PSPP (Public Sector Purchasing Program) of the Federal Constitutional Court showed another rift in the structure of the European Union. That is, the one between legal systems with a different conception of the Constitution. There are strong parallels with the case of the United Kingdom, where the EU model, according to which a constitution is changed step by step by a court of last resort, has clashed sharply with the British tradition of strong parliamentary governance , which contributed to Brexit.
In the conflict between the German Constitutional Court and the European Court of Justice (ECJ), we are witnessing a battle between two powerful courts of last resort, a conflict which essentially concerns only one fundamental question, namely: the EU is an organization international or a federal state?
Therefore, it is no surprise that investors turn to U.S. Treasuries during times of increased uncertainty as a safe haven for their investments. This happened once again during the recent financial crisis. In fact, the increase in the demand for Treasuries was sufficiently large so that prices actually rose with an increase in the supply of government securities.
In the conflict between the German Constitutional Court and the European Court of Justice (ECJ), we are witnessing a battle between two powerful courts of last resort, a conflict which essentially concerns only one fundamental question, namely: the EU is an organization international or a federal state?
Therefore, it is no surprise that investors turn to U.S. Treasuries during times of increased uncertainty as a safe haven for their investments. This happened once again during the recent financial crisis. In fact, the increase in the demand for Treasuries was sufficiently large so that prices actually rose with an increase in the supply of government securities.
