The stability of the euro zone is once again under scrutiny after the German Constitutional Court issued a decision last week that surprised financial markets and policymakers in Europe.
The euro zone has a unique set up, where the 19 member governments oversee their own fiscal policy, but the ECB decides monetary policy across the region. The German Constitutional Court ruling is the latest incident showcasing differences between national and European institutions.
The image is essentially one in which individual member states have a wide range of different priorities, relative to a number of the EU's institutions., started purchasing governments bonds in 2015 in an effort to prop up moribund prices and economic growth in the euro area. This stimulus program ended in 2018, but was restarted in late 2019 as economic indicators remained weak.
She added that European law has primacy over national law and that rulings of the European Court of Justice are binding on all national courts.Nonetheless, there are concerns that the court ruling will be used by member states which are at odds with European institutions.
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