The legality of the European Central Bank’s Pandemic Emergency Purchase Programme

BRIDGE Network - Working Paper 5, 2020

20 Pages Posted: 20 Aug 2020

Date Written: August 19, 2020

Abstract

The COVID-19 crisis has a big impact upon the European economy. To restore its transmission mechanisms and mitigate the financial impact the European Central Bank(ECB) introduced its Pandemic Emergency Purchase Programme (PEPP). A €750 million purchasing plan. This paper discusses the legality of these plans using the European legal framework and the recent framework generated by the German Constitutional Court (GCC). This paper claims the PEPP is legal under the European framework. The PEPP would not have been considered legal by the German Constitutional Court, though this probably changed with some of the recent developments. This paper furthermore analyzes the impact of this programme upon the mandate of the ECB. It describes the change of the role of the ECB from a cautious bank to a bank ready to fight a crisis. This role has generated tension between the core and periphery countries. These tensions result from the underlying flaw in the EMU which can only be solved by further integration or disintegration.

Keywords: ECB, EMU, Pandemic Purchase Programme, legality, German Constitutional Court

Suggested Citation

Mooij, Annelieke A.M., The legality of the European Central Bank’s Pandemic Emergency Purchase Programme (August 19, 2020). BRIDGE Network - Working Paper 5, 2020, Available at SSRN: https://ssrn.com/abstract=3677152 or http://dx.doi.org/10.2139/ssrn.3677152

Annelieke A.M. Mooij (Contact Author)

School of Law and Government ( email )

Ireland

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
31
Abstract Views
241
PlumX Metrics