The corona pandemic has made a lot of economic demands on Germany and the other EU countries. A huge cash injection should help them get back on their feet quickly and emerge stronger from the crisis. The only problem: critics believe that the Bundestag should never have agreed to German participation. The Federal Constitutional Court has been hearing about their complaints since Tuesday. (Az. 2 BvR 547/21 and others)
To the development program with the official name "Next Generation EU". In December 2020, the heads of state and government authorized the EU Commission to raise up to 750 billion euros on the capital markets. Since this sum is based on the prices of 2018, it is now de facto almost 807 billion euros. The states agreed that the consequences of the crisis could only be dealt with with such an "extraordinary response".
Almost half of the money is given out as a loan, with a slightly smaller amount going into grants. The remainder is disbursed through programs in the EU budget. The debt is to be repaid from the Union budget over decades - by the end of 2058 at the latest. The funding will primarily benefit projects that promote a more environmentally friendly and digital economy. Each state had to submit a plan with specific projects.
The largest sums go to particularly hard-hit countries such as Italy and Spain. Germany expected grants of almost 26 billion euros net. 90 percent of this should flow into climate projects and the digital transformation, for example in hydrogen research, climate-friendly mobility and a more digitally oriented education system. The purchase of electric cars, buses and trains is to be promoted and the charging infrastructure expanded.
It is the first time that the EU Commission has taken on such large sums of money as joint debt - and that the EU countries are jointly liable for it. In March 2021, the Federal Court of Auditors spoke of a "watershed for the European financial architecture" and warned of the risks for the federal budget. Germany is expected to be the largest net contributor with around 65 billion euros. If states no longer meet their payment obligations, the others would have to take responsibility for their share of the EU budget.
The assumptions differ greatly here: the Karlsruhe plaintiffs warn that there will be a liability share of 850 to 1000 billion euros over the entire term up to 2058. In its statement for the court, the Bundestag calls this completely unfounded – the maximum additional burden is 21.75 billion euros per year. The federal government sees it the same way.
The lawsuits are directed against the law with which the Bundestag approved German participation. Out of five pending constitutional complaints, the Second Senate selected two for hearing. One of them comes from an alliance around the former AfD founder Bernd Lucke and is supported by almost 2,300 people. The second was submitted by entrepreneur Heinrich Weiss. Several CDU MPs in Karlsruhe had also complained about the reconstruction fund. There is also an organ lawsuit by the AfD parliamentary group.
The core of the Basic Law is that the Bundestag decides on all essential income and expenditure. In addition, citizens have the right to ensure that all EU bodies only exercise those competences that have been transferred to them by the individual states. The judges have to clarify whether the EU Corona Fund violates one of these principles - or even both. They had made the start possible in an urgent procedure so as not to block quick aid and not leave a political mess in their wake. However, the decision of April 2021 also states that a violation of the constitution cannot be ruled out.
From their point of view, the program stands on a solid foundation. "That's legally correct, it's within the framework of the European treaties, also within the framework of national legislation," said Finance Secretary Werner Gatzer before the start of the negotiations. More than two-thirds of the members of the Bundestag agreed that the Bundesrat had unanimously given the go-ahead.
The urgent decision shows that Karlsruhe would then definitely first involve the European Court of Justice (ECJ) in Luxembourg. According to this, Germany would also get out of the recovery program again: either the ECJ could declare the underlying decision null and void in all EU states. Or the Federal Constitutional Court could prohibit its use in Germany. Then the Federal Government, Bundestag and Bundesrat would be obliged to advocate for the abolition or adjustment.
The judges have scheduled a second day of hearings for Wednesday. The verdict is not expected for a few months at the earliest.
