The Constitutional Court of Germany has stopped this Friday the ratification of the recovery fund of 750,000 million euros with which the EU wants to boost its economy after the pandemic, a decision that leaves in the air the date of the arrival of European aid to the capitals.
As explained in a statement, the German Constitutional has ordered the country’s president, Frank-Wlater Steinmeier to stop the signing of the EU Own Resources Decision, a key legislation for the implementation of the anti-crisis plan because it is the one that allows the European Commission to issue the debt with which it will finance the recovery. This regulation had been previously approved without problems in the Parliament (Bundestag) and in the Senate (Bundesrat), but the movement of the Constitutional prevented the completion of the procedure national ratification.
The reason is that the judges of the German High Court must first resolve an appeal filed by a group of German citizens who question the legality of the recovery fund, which foresees the delivery to Spain of 140,000 million euros, of which 70,000 million will take the form of non-refundable transfers.
The appeal, presented by a group of economics professors close to the founder of the far-right AfD (Alternative for Germany) party, Bernd Lucke, defends the idea that the European Union cannot take on new loans. They argue that the Union is bound by its treaties to finance itself and that debts cannot be financed with capital outside the Union itself.
German judges have not given deadlines on their future verdict, but their decisions on similar matters took up to three months, according to German diplomatic sources. This means that the EU will not be able to meet its target of all Member States having ratified the plan by the end of April.
The Community Executive cannot go to the debt markets until the EU Own Resources Decision has been approved in the 27 national parliaments. At the moment, it has only been fully ratified in Bulgaria, the Czech Republic, Spain, France, Croatia, Italy, Cyprus, Malta, Portugal and Slovenia.
The ratification of the recovery fund in all the Member States is not the only procedure to be completed so that aid begins to flow to the countries, since the EU must first give the go-ahead to national plans with the reforms and investments that will finance these funds